House Amendment 8026 PAG LIN 1 1 Amend House File 2351 as follows: 1 2 #1. Page 26, by inserting after line 2, the 1 3 following: 1 4 <Sec. . Section 422.7, Code Supplement 2005, is 1 5 amended by adding the following new subsection: 1 6 NEW SUBSECTION. 45. Subtract, to the extent 1 7 included, the amount of gain realized by the taxpayer 1 8 as a result of the involuntary conversion of property 1 9 due to eminent domain or the threat of eminent domain. 1 10 However, if the total amount of such realized gain is 1 11 not recognized because the converted property is 1 12 replaced with property that is similar to, or related 1 13 in use to, the converted property, the amount of such 1 14 realized gain shall not be subtracted under this 1 15 subsection until the remaining realized gain is 1 16 subject to federal taxation or until the time of 1 17 disposition of the replacement property as provided 1 18 under rules of the director. The subtraction allowed 1 19 under this subsection shall not alter the basis as 1 20 established for federal tax purposes of any property 1 21 owned by the taxpayer. 1 22 Sec. . Section 422.35, Code Supplement 2005, is 1 23 amended by adding the following new subsection: 1 24 NEW SUBSECTION. 22. Subtract, to the extent 1 25 included, the amount of gain realized by the taxpayer 1 26 as a result of the involuntary conversion of property 1 27 due to eminent domain or the threat of eminent domain. 1 28 However, if the total amount of such realized gain is 1 29 not recognized because the converted property is 1 30 replaced with property that is similar to, or related 1 31 in use to, the converted property, the amount of such 1 32 realized gain shall not be subtracted under this 1 33 subsection until the remaining realized gain is 1 34 subject to federal taxation or until the time of 1 35 disposition of the replacement property as provided 1 36 under rules of the director. The subtraction allowed 1 37 under this subsection shall not alter the basis as 1 38 established for federal tax purposes of any property 1 39 owned by the taxpayer.> 1 40 #2. Page 28, by inserting after line 16, the 1 41 following: 1 42 < . The sections of this Act enacting section 1 43 422.7, subsection 45, and section 422.35, subsection 1 44 22, apply retroactively to January 1, 2006, for tax 1 45 years beginning on or after that date.> 1 46 #3. By renumbering as necessary. 1 47 1 48 1 49 1 50 DAVITT of Warren 2 1 HF 2351.302 81 2 2 sc/cf/3561 -1-