IIA
104TH CONGRESS
1ST SESSION
H. R. 831
IN THE SENATE OF THE UNITED STATES
FEBRUARY 22, 1995
Received; read twice and referred to the Committee on Finance
AN ACT
To amend the Internal Revenue Code of 1986 to permanently
extend the deduction for the health insurance costs of
self-employed individuals, to repeal the provision permit-
ting nonrecognition of gain on sales and exchanges effec-
tuating policies of the Federal Communications Commis-
sion, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. PERMANENT EXTENSION OF DEDUCTION FOR
HEALTH INSURANCE COSTS OF SELF-EM-
PLOYED INDIVIDUALS.
(a) IN GENERAL.—Subsection (l) of section 162 of
the Internal Revenue Code of 1986 (relating to special
rules for health insurance costs of self-employed individ-
uals) is amended by striking paragraph (6).
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to taxable years beginning after
December 31, 1993.
SEC. 2. REPEAL OF NONRECOGNITION ON FCC CERTIFIED
SALES AND EXCHANGES.
(a) IN GENERAL.—Subchapter O of chapter 1 of the
Internal Revenue Code of 1986 is amended by striking
part V (relating to changes to effectuate FCC policy).
(b) CLERICAL AMENDMENT.—The table of parts for
such subchapter O is amended by striking the item relat-
ing to part V.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall apply to—
(A) sales and exchanges on or after Janu-
ary 17, 1995, and
(B) sales and exchanges before such date
if the FCC tax certificate with respect to such
sale or exchange is issued on or after such date.
(2) BINDING CONTRACTS.—
(A) IN GENERAL.—The amendments made
by this section shall not apply to any sale or ex-
change pursuant to a written contract which
was binding on January 16, 1995, and at all
times thereafter before the sale or exchange, if
the FCC tax certificate with respect to such
sale or exchange was applied for, or issued, on
or before such date.
(B) SALES CONTINGENT ON ISSUANCE OF
CERTIFICATE.—A contract shall be treated as
not binding for purposes of subparagraph (A) if
the sale or exchange pursuant to such contract,
or the material terms of such contract, were
contingent, at any time on January 16, 1995,
on the issuance of an FCC tax certificate. The
preceding sentence shall not apply if the FCC
tax certificate for such sale or exchange is is-
sued on or before January 16, 1995.
(3) FCC TAX CERTIFICATE.—For purposes of
this subsection, the term ‘‘FCC tax certificate’’
means any certificate of the Federal Communica-
tions Commission for the effectuation of section
1071 of the Internal Revenue Code of 1986 (as in
effect on the day before the date of the enactment
of this Act).
SEC. 3. NONRECOGNITION ON INVOLUNTARY CONVER-
SIONS NOT TO APPLY IF REPLACEMENT
PROPERTY ACQUIRED FROM RELATED PER-
SON.
(a) IN GENERAL.—Section 1033 of the Internal Rev-
enue Code of 1986 (relating to involuntary conversions)
is amended by redesignating subsection (i) as subsection
(j) and by inserting after subsection (h) the following new
subsection:
‘‘(i) NONRECOGNITION NOT TO APPLY IF REPLACE-
MENT PROPERTY ACQUIRED FROM RELATED PERSON.—
Subsection (a) shall not apply if the replacement property
or stock acquired is acquired from a related person. For
purposes of the preceding sentence, a person is related to
another person if the relationship between such persons
would result in a disallowance of losses under section 267
or 707(b).’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to replacement property or stock
acquired on or after February 6, 1995.