House File 2119

                                       HOUSE FILE       
                                       BY  MILLER


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing for a deduction in computing individual income
  2    tax for gains from the sale of works of fine art or written
  3    materials by or on behalf of the artist or author and
  4    including a retroactive applicability date.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 5712HH 80
  7 mg/gg/14

PAG LIN

  1  1    Section 1.  Section 422.7, Code Supplement 2003, is amended
  1  2 by adding the following new subsection:
  1  3    NEW SUBSECTION.  44.  a.  Subtract, to the extent not
  1  4 otherwise excluded, the first twenty=five thousand dollars of
  1  5 the gain from the sale of a work of fine art or written
  1  6 material where the sale is made by the artist or author, by an
  1  7 art dealer on consignment from the artist, or by an agent on
  1  8 behalf of the author.
  1  9    b.  For purposes of this subsection:
  1 10    (1)  "Art dealer", "artist", "consignment", and "fine art"
  1 11 mean the same as those terms are defined in section 556D.1.
  1 12    (2)  "Written material" means an article, book, essay,
  1 13 poetry, play, script, or story written by an individual on a
  1 14 professional, freelance basis and not as an employee of
  1 15 another person.
  1 16    Sec. 2.  RETROACTIVE APPLICABILITY DATE.  This Act applies
  1 17 retroactively to January 1, 2004, for tax years beginning on
  1 18 or after that date.
  1 19                           EXPLANATION
  1 20    This bill provides a deduction from the income tax of up to
  1 21 $25,000 of the gain from the sale of a work of fine art or
  1 22 written material by the artist or writer, by an art dealer on
  1 23 consignment, or by an agent on behalf of the writer.
  1 24    The bill applies retroactively to January 1, 2004, for tax
  1 25 years beginning on or after that date.
  1 26 LSB 5712HH 80
  1 27 mg/gg/14
  1 28
  1 29
  1 30
  1 31
  1 32
  1 33
  1 34
  1 35