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 mis-
cellaneous itemized deductions, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. DEDUCTION FOR INVESTMENT ADVISORY EX-
PENSES OF CERTAIN FUNERAL AND CEME-
TERY TRUSTS ALLOWED DURING SUSPEN-
SION OF MISCELLANEOUS ITEMIZED DEDUC-
TIONS. 
(a) IN GENERAL.—Section 67(g) of the Internal Rev-
enue Code of 1986 is amended— 
(1) by striking ‘‘Notwithstanding’’ and insert-
ing the following: 
‘‘(1) IN GENERAL.—Notwithstanding’’, and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) DEDUCTION FOR INVESTMENT ADVISORY 
EXPENSES OF CERTAIN FUNERAL AND CEMETERY 
TRUSTS
ALLOWED
DURING
SUSPENSION.—In the 
case of any qualified funeral trust (as defined in sec-
tion 685(b)) or cemetery perpetual care fund (de-
scribed in section 642(i) and meeting the require-
ments of paragraphs (1) and (2) thereof), subsection 
(a) and paragraph (1) of this subsection shall not 
apply to any deduction allowed for investment advi-
sory expenses for a taxable year beginning after De-
cember 31, 2023, and before January 1, 2030.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2023. 
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SEC. 2. SPECIAL RULE FOR DISTRIBUTIONS BY CEMETERY 
PERPETUAL FUNDS INDEXED TO INFLATION. 
(a) IN GENERAL.—Section 642(i) of the Internal 
Revenue Code of 1986 is amended to read as follows: 
‘‘(i) CERTAIN DISTRIBUTIONS BY CEMETERY PER-
PETUAL CARE FUNDS.— 
‘‘(1) IN GENERAL.—In the case of a cemetery 
perpetual care fund which— 
‘‘(A) was created pursuant to local law by 
a taxable cemetery corporation for the care and 
maintenance of cemetery property, and 
‘‘(B) is treated for the taxable year as a 
trust for purposes of this subchapter, any 
amount distributed by such fund for the care 
and maintenance of gravesites which have been 
purchased from the cemetery corporation before 
the beginning of the taxable year of the trust 
and with respect to which there is an obligation 
to furnish care and maintenance shall be con-
sidered to be a distribution solely for purposes 
of sections 651 and 661, but only to the extent 
that the aggregate amount so distributed dur-
ing the taxable year does not exceed $25 multi-
plied by the aggregate number of such 
gravesites. 
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‘‘(2) INFLATION ADJUSTMENT.—In the case of 
any taxable year to which this subsection applies and 
which begins after 2024, the $25 amount in para-
graph (1)(A) shall be increased by an amount equal 
to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2023’ for 
‘calendar year 2016’ in subparagraph (A)(ii) 
thereof.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2023. 
Æ 
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