Text: HF00657 Text: HF00659 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.7, Code 2003, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 39. Subtract the capital gain from the 1 4 following: 1 5 a. The sale of an equity investment in a business if all 1 6 of the following requirements are met: 1 7 (1) The equity investment is held for a period of thirty- 1 8 six months or more from the date of acquisition. 1 9 (2) A credit is not claimed on the investment under 1 10 section 15E.66, 422.11F, or 422.11G. 1 11 (3) The deduction under this paragraph "a" is in lieu of 1 12 any deduction under section 1202 of the Internal Revenue Code. 1 13 b. If the adjusted gross income includes income or loss 1 14 from a business operated by the taxpayer, the sale of a 1 15 building, land, or machinery and equipment used in the 1 16 operation of the business if the building, land, or machinery 1 17 and equipment are held for a period of thirty-six months or 1 18 more from the date of acquisition. 1 19 An individual may claim the capital gain deduction of a 1 20 partnership, S corporation, limited liability company, estate, 1 21 or trust electing to have the income taxed directly to the 1 22 individual. The amount claimed by the individual shall be 1 23 based upon the pro rata share of the individual's earnings of 1 24 a partnership, S corporation, limited liability company, 1 25 estate, or trust. 1 26 Sec. 2. Section 422.35, Code 2003, is amended by adding 1 27 the following new subsection: 1 28 NEW SUBSECTION. 19. Subtract the capital gain from the 1 29 following: 1 30 a. The sale of an equity investment in a business if all 1 31 of the following requirements are met: 1 32 (1) The equity investment is held for a period of thirty- 1 33 six months or more from the date of acquisition. 1 34 (2) A credit is not claimed on the investment under 1 35 subsection 12 or 13 or section 15E.66. 2 1 b. The sale of a building, land, or machinery and 2 2 equipment used in the operation of the business if the 2 3 building, land, or machinery and equipment are held for a 2 4 period of thirty-six months or more from the date of 2 5 acquisition. 2 6 Sec. 3. APPLICABILITY DATE. This Act applies to capital 2 7 investments made in or by businesses on or after January 1, 2 8 2003, for tax years ending after that date. 2 9 EXPLANATION 2 10 This bill provides for the deduction of capital gains from 2 11 the sale of equity investments in businesses and from the sale 2 12 of buildings, land, or machinery and equipment of business if 2 13 certain requirements are met. These requirements are that the 2 14 equity investment or the building, land, or machinery and 2 15 equipment are held for at least three years; and no credit or 2 16 other deduction for the capital investment or gain is allowed. 2 17 The bill applies to capital investments made in or by 2 18 businesses on or after January 1, 2003, for tax years ending 2 19 after that date. 2 20 LSB 1690HH 80 2 21 mg/pj/5.2
Text: HF00657 Text: HF00659 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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