This bill changes the federal tax code so that people do not have to include gain from the conversion of property by reason of eminent domain in their gross income. That includes sales or exchanges made under threat or imminence of eminent domain. The bill says section 1033 of the tax code will not apply to conversions covered by this new rule. Taxpayers may choose not to use the exclusion. The Treasury Department (the Secretary) is directed to issue rules to implement the change. The rule applies to taxable years ending after the law is enacted.
If your property is taken or effectively taken through eminent domain, any gain from that conversion would be excluded from your gross income under this bill. You could also elect not to use the exclusion if you prefer. Existing special rules under section 1033 would not apply to these conversions.
No publicly available information on estimated revenue effects, federal budget impact, or cost estimates appears in the bill text or metadata provided.
No publicly available information in the bill text or metadata about proponents' explanations or detailed arguments. The bill was introduced by Representatives Ben Cline, Charles Fleischmann, Scott Perry, Barry Moore, Andrew Ogles, and others as listed in the metadata.
No publicly available information in the bill text or metadata about opponents' explanations or detailed arguments.