No Tax on Takings Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
This bill, the No Tax on Takings Act, aims to prevent taxpayers from paying income tax on profits gained when the government takes their property through eminent domain. It specifically excludes any gain from the sale or exchange of property due to eminent domain, ensuring that property owners aren't penalized for the government's acquisition of their land. The bill clarifies that existing rules regarding involuntary conversions do not apply to eminent domain takings, and it allows taxpayers to opt-out of this exclusion.
Key provisions
- Excludes gain from the sale or exchange of property due to eminent domain from gross income.
- Does not apply to involuntary conversions as defined by existing tax law.
- Provides an option for taxpayers to elect not to claim the exclusion.
- Requires the Secretary of the Treasury to issue regulations clarifying the application of the law.
Who is affected
- Taxpayers
- Property owners
- Government entities (involved in eminent domain)
- Real estate developers
- Individuals and businesses owning property subject to eminent domain
Notable changes
- Modifies the Internal Revenue Code to address gains from eminent domain.
- Creates a new section (139M) specifically for this exclusion.
- Allows for a taxpayer election to opt-out of the exclusion.
Bill text
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Sponsors
Official sponsors from legislative records.
11 on record
Primary sponsor
Cosponsors
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