Capital Gains Easement Act of 2013

Bill: 113-hr-2713
Sponsor: full_name: Rep. Meadows, Mark [R-NC-11]
Introduced: 2013-07-17
Policy area: Taxation
Subjects: Income tax exclusion

Land transfers

Land use and conservation

Social work, volunteer service, charitable organizations

Tax-exempt organizations

Transfer and inheritance taxes
Latest action: action_date: 2013-07-17
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2013-07-17
action_desc: Introduced in House
text: <p>Capital Gains Easement Act of 2013 - Amends the Internal Revenue Code to exclude from gross income, for income tax purposes, any gain from the sale or grant of a qualified real property interest to a tax-exempt organization made exclusively for conservation purposes. Defines &quot;qualified real property interest&quot; as any interest in real property which is: (1) the entire interest of the taxpayer, (2) a remainder interest, or (3) a restriction (granted in perpetuity) on the use which may be made of the real property. Exempts such a sale or grant of a qualified real property interest from the application of estate tax property valuation rules.</p>

tv_txt: I 113th CONGRESS 1st Session H. R. 2713 IN THE HOUSE OF REPRESENTATIVES July 17, 2013 Mr. Meadows 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 exclude from gross income gain from the sale or grant of conservation easements and to allow the sale or grant of conservation easements in the case of the special estate tax valuation provisions for certain farm and other trade or business real property.

1. Short title This Act may be cited as the Capital Gains Easement Act of 2013 . 2. Exclusion of gain from sale or grant for real property conservation purposes (a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section: 139E. Gain from sale or grant for conservation purposes (a) In general Gross income shall not include any gain from the sale or grant of a qualified real property interest to a qualified organization exclusively for conservation purposes. (b) Definitions For purposes of this section— (1) Qualified real property interest (A) In general The term qualified real property interest means any of the following interests in real property: (i) The entire interest of the taxpayer. (ii) A remainder interest. (iii) A restriction (granted in perpetuity) on the use which may be made of the real property. (B) Special rule for mineral interests An interest in real property shall not fail to be treated as a qualified real property interest solely by reason of a retention of a qualified mineral interest. (2) Qualified organization; conservation purposes The terms qualified organization and conservation purpose shall have the respective meanings given such terms by section 170(h). . (b) Clerical amendment The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting before the item relating to section 140 the following new item: Sec. 139E. Gain from sale or grant of conservation easement. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 3. Sale of conservation easement not a disposition for purposes of special estate tax real estate valuation rules (a) In general Paragraph (8) of section 2032A(c) of the Internal Revenue Code of 1986 is amended by inserting or a sale or grant to which section 139E applies after by gift or otherwise . (b) Effective date The amendment made by this section shall apply to sales or grants after the date of the enactment of this Act.