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

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