Senate File 2271 - Introduced



                                       SENATE FILE       
                                       BY  COMMITTEE ON WAYS AND MEANS

                                       (SUCCESSOR TO SF 2093)



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

                                      A BILL FOR

  1 An Act relating to the holding period for purposes of certain
  2    capital assets under the individual income tax and including
  3    effective and applicability date provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5204SV 81
  6 mg/sh/8

PAG LIN



  1  1    Section 1.  Section 422.7, subsection 21, Code Supplement
  1  2 2005, is amended by adding the following new unnumbered
  1  3 paragraph:
  1  4    NEW UNNUMBERED PARAGRAPH.  For purposes of this subsection,
  1  5 the term "held" shall be determined with reference to the
  1  6 holding period provisions of section 1223 of the Internal
  1  7 Revenue Code and the federal regulations adopted pursuant
  1  8 thereto.
  1  9    Sec. 2.  RETROACTIVE APPLICABILITY DATE PROVISIONS.  This
  1 10 Act, being deemed of immediate importance, takes effect upon
  1 11 enactment and retroactively applies to all of the following:
  1 12    1.  Sales made on or after January 1, 2006.
  1 13    2.  Determining the holding period for sales made on or
  1 14 after January 1, 2006.
  1 15    3.  Tax years ending on or after January 1, 2006.
  1 16                           EXPLANATION
  1 17    This bill requires that the computation of the holding
  1 18 period for purposes of the capital gains deduction under Code
  1 19 section 422.7, subsection 21, be determined in the same manner
  1 20 as the holding period of assets is determined for federal tax
  1 21 purposes under Internal Revenue Code section 1223.  These
  1 22 provisions will, in some cases, add the holding period of
  1 23 other property or the holding period of another owner to the
  1 24 holding period of the taxpayer in determining whether the
  1 25 required 10=year holding period has been satisfied, such as
  1 26 property received in a like=kind exchange, property received
  1 27 by gift, or property purchased from the proceeds of an
  1 28 involuntary conversion.
  1 29    The bill takes effect upon enactment and applies
  1 30 retroactively to January 1, 2006, and applies to sales made on
  1 31 or after January 1, 2006, during tax years ending on or after
  1 32 that date.
  1 33 LSB 5204SV 81
  1 34 mg:rj/sh/8