I 

118TH CONGRESS 

1ST SESSION H. R. 5251 

To amend the Internal Revenue Code of 1986 to allow a deduction for 

investment advisory expenses of certain funeral and cemetery trusts 

during suspension of miscellaneous itemized deductions, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 22, 2023 

Mr. FERGUSON (for himself and Ms. SA ́NCHEZ) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to allow a 

deduction for investment advisory expenses of certain 

funeral and cemetery trusts during suspension of miscellaneous itemized deductions, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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•HR 5251 IH

1 SECTION 1. DEDUCTION FOR INVESTMENT ADVISORY EX2 PENSES OF CERTAIN FUNERAL AND CEME3 TERY TRUSTS ALLOWED DURING SUSPEN4 SION OF MISCELLANEOUS ITEMIZED DEDUC5 TIONS. 

6 (a) IN GENERAL.—Section 67(g) of the Internal Rev7 enue Code of 1986 is amended— 

8 (1) by striking ‘‘Notwithstanding’’ and insert9 ing the following: 

10 ‘‘(1) IN GENERAL.—Notwithstanding’’, and 

11 (2) by adding at the end the following new 

12 paragraph: 

13 ‘‘(2) DEDUCTION FOR INVESTMENT ADVISORY

14 EXPENSES OF CERTAIN FUNERAL AND CEMETERY

15 TRUSTS ALLOWED DURING SUSPENSION.—In the 

16 case of any qualified funeral trust (as defined in sec17 tion 685(b)) or cemetery perpetual care fund (de18 scribed in section 642(i) and meeting the require19 ments of paragraphs (1) and (2) thereof), subsection 

20 (a) and paragraph (1) of this subsection shall not 

21 apply to any deduction allowed for investment advi22 sory expenses for a taxable year beginning after De23 cember 31, 2023, and before January 1, 2030.’’. 

24 (b) EFFECTIVE DATE.—The amendments made by 

25 this section shall apply to taxable years beginning after 

26 December 31, 2023. 


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•HR 5251 IH

1 SEC. 2. SPECIAL RULE FOR DISTRIBUTIONS BY CEMETERY 

2 PERPETUAL FUNDS INDEXED TO INFLATION. 

3 (a) IN GENERAL.—Section 642(i) of the Internal 

4 Revenue Code of 1986 is amended to read as follows: 

5 ‘‘(i) CERTAIN DISTRIBUTIONS BY CEMETERY PER6 PETUAL CARE FUNDS.— 

7 ‘‘(1) IN GENERAL.—In the case of a cemetery 

8 perpetual care fund which— 

9 ‘‘(A) was created pursuant to local law by 

10 a taxable cemetery corporation for the care and 

11 maintenance of cemetery property, and 

12 ‘‘(B) is treated for the taxable year as a 

13 trust for purposes of this subchapter, any 

14 amount distributed by such fund for the care 

15 and maintenance of gravesites which have been 

16 purchased from the cemetery corporation before 

17 the beginning of the taxable year of the trust 

18 and with respect to which there is an obligation 

19 to furnish care and maintenance shall be con20 sidered to be a distribution solely for purposes 

21 of sections 651 and 661, but only to the extent 

22 that the aggregate amount so distributed dur23 ing the taxable year does not exceed $25 multi24 plied by the aggregate number of such 

25 gravesites. 


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•HR 5251 IH

1 ‘‘(2) INFLATION ADJUSTMENT.—In the case of 

2 any taxable year to which this subsection applies and 

3 which begins after 2024, the $25 amount in para4 graph (1)(A) shall be increased by an amount equal 

5 to— 

6 ‘‘(A) such dollar amount, multiplied by 

7 ‘‘(B) the cost-of-living adjustment deter8 mined under section 1(f)(3) for the calendar 

9 year in which the taxable year begins, deter10 mined by substituting ‘calendar year 2023’ for 

11 ‘calendar year 2016’ in subparagraph (A)(ii) 

12 thereof.’’. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 this section shall apply to taxable years beginning after 

15 December 31, 2023. 

Æ 


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