Source: https://www.law.cornell.edu/uscode/text/26/1400B
Timestamp: 2015-05-30 03:07:10
Document Index: 100641678

Matched Legal Cases: ['§ 1400', '§ 1400', '§ 1400', '§ 701', '§ 6008', '§ 1', '§ 116', '§ 310', '§ 110', '§ 322', '§ 754', '§ 754', '§ 754', '§ 754', '§ 322', '§ 322', '§ 322', '§ 110', '§ 110', '§ 110', '§ 310', '§ 310', '§ 310', '§ 1', '§ 164', '§ 1', '§ 116', '§ 1', '§ 164', '§ 1', '§ 164', '§ 6008', '§ 6008', '§ 6008', '§ 6008', '§ 322', '§ 110']

26 U.S. Code § 1400B - Zero percent capital gains rate | US Law | LII / Legal Information Institute
U.S. Code › Title 26 › Subtitle A › Chapter 1 › Subchapter W › § 1400B 26 U.S. Code § 1400B - Zero percent capital gains rate
Exclusion Gross income shall not include qualified capital gain from the sale or exchange of any DC Zone asset held for more than 5 years.
DC Zone asset For purposes of this section—
In general The term “DC Zone asset” means—
DC Zone business stock (A)
In general The term “DC Zone business stock” means any stock in a domestic corporation which is originally issued after December 31, 1997, if—
such stock is acquired by the taxpayer, before January 1, 2012, at its original issue (directly or through an underwriter) solely in exchange for cash,
during substantially all of the taxpayer’s holding period for such stock, such corporation qualified as a DC Zone business.
DC Zone partnership interest The term “DC Zone partnership interest” means any capital or profits interest in a domestic partnership which is originally issued after December 31, 1997, if—
such interest is acquired by the taxpayer, before January 1, 2012, from the partnership solely in exchange for cash,
during substantially all of the taxpayer’s holding period for such interest, such partnership qualified as a DC Zone business.
DC Zone business property (A)
In general The term “DC Zone business property” means tangible property if—
(d)(2)) after December 31, 1997, and before January 1, 2012,
during substantially all of the taxpayer’s holding period for such property, substantially all of the use of such property was in a DC Zone business of the taxpayer.
Special rule for buildings which are substantially improved (i)
property which is substantially improved by the taxpayer before January 1, 2012, and
Treatment of DC Zone termination The termination of the designation of the DC Zone shall be disregarded for purposes of determining whether any property is a DC Zone asset.
Treatment of subsequent purchasers, etc. The term “DC Zone asset” includes any property which would be a DC Zone asset but for paragraph (2)(A)(i), (3)(A), or (4)(A)(i) or (ii) in the hands of the taxpayer if such property was a DC Zone asset in the hands of a prior holder.
5-year safe harbor If any property ceases to be a DC Zone asset by reason of paragraph (2)(A)(iii), (3)(C), or (4)(A)(iii) after the 5-year period beginning on the date the taxpayer acquired such property, such property shall continue to be treated as meeting the requirements of such paragraph; except that the amount of gain to which subsection (a) applies on any sale or exchange of such property shall not exceed the amount which would be qualified capital gain had such property been sold on the date of such cessation.
DC Zone business For purposes of this section, the term “DC Zone business” means any enterprise zone business (as defined in section 1397C), determined—
after the application of section 1400
by substituting “80 percent” for “50 percent” in subsections (b)(2) and (c)(1) ofsection 1397C, and
Treatment of zone as including census tracts with 10 percent poverty rate For purposes of applying this section (and for purposes of applying this subchapter and subchapter U with respect to this section), the DC Zone shall be treated as including all census tracts—
Qualified capital gain Except as otherwise provided in this subsection, the term “qualified capital gain” means any gain recognized on the sale or exchange of—
Gain before 1998 or after 2016 not qualified The term “qualified capital gain” shall not include any gain attributable to periods before January 1, 1998, or after December 31, 2016.
Certain gain not qualified The term “qualified capital gain” shall not include any gain which would be treated as ordinary income under section 1245 or under section 1250 if section 1250 applied to all depreciation rather than the additional depreciation.
Intangibles and land not integral part of DC Zone business The term “qualified capital gain” shall not include any gain which is attributable to real property, or an intangible asset, which is not an integral part of a DC Zone business.
Related party transactions The term “qualified capital gain” shall not include any gain attributable, directly or indirectly, in whole or in part, to a transaction with a related person. For purposes of this paragraph, persons are related to each other if such persons are described in section 267
Certain other rules to apply Rules similar to the rules of subsections (g), (h), (i)(2), and (j) ofsection 1202 shall apply for purposes of this section.
Sales and exchanges of interests in partnerships and S corporations which are DC Zone businesses In the case of the sale or exchange of an interest in a partnership, or of stock in an S corporation, which was a DC Zone business during substantially all of the period the taxpayer held such interest or stock, the amount of qualified capital gain shall be determined without regard to—
any gain attributable to periods before January 1, 1998, or after December 31, 2016.
(Added Pub. L. 105–34, title VII, § 701(a),Aug. 5, 1997, 111 Stat. 864; amended Pub. L. 105–206, title VI, § 6008(c),July 22, 1998, 112 Stat. 811; Pub. L. 106–554, § 1(a)(7) [title I, §§ 116(b)(5), 164
(b)], Dec. 21, 2000, 114 Stat. 2763, 2763A–603, 2763A–625; Pub. L. 108–311, title III, § 310(c)(1)–(2)(B), Oct. 4, 2004, 118 Stat. 1180; Pub. L. 109–432, div. A, title I, § 110(c)(1)–(2)(B), Dec. 20, 2006, 120 Stat. 2940; Pub. L. 110–343, div. C, title III, § 322(c)(1), (2)(A), (B),Oct. 3, 2008, 122 Stat. 3874; Pub. L. 111–312, title VII, § 754(c),Dec. 17, 2010, 124 Stat. 3321.)
2010—Subsec. (b). Pub. L. 111–312, § 754(c)(1), substituted “2012” for “2010” wherever appearing.
Subsec. (e)(2). Pub. L. 111–312, § 754(c)(2)(A), substituted “2016” for “2014” in heading and text.
Subsec. (g)(2). Pub. L. 111–312, § 754(c)(2)(B), substituted “2016” for “2014”.
2008—Subsec. (b). Pub. L. 110–343, § 322(c)(1), substituted “2010” for “2008” wherever appearing.
Subsec. (e)(2). Pub. L. 110–343, § 322(c)(2)(A), substituted “2014” for “2012” in heading and text.
Subsec. (g)(2). Pub. L. 110–343, § 322(c)(2)(B), substituted “2014” for “2012”.
2006—Subsec. (b). Pub. L. 109–432, § 110(c)(1), substituted “2008” for “2006” wherever appearing.
Subsec. (e)(2). Pub. L. 109–432, § 110(c)(2)(A), substituted “2012” for “2010” in heading and text.
Subsec. (g)(2). Pub. L. 109–432, § 110(c)(2)(B), substituted “2012” for “2010”.
2004—Subsec. (b). Pub. L. 108–311, § 310(c)(1), substituted “2006” for “2004” wherever appearing.
Subsec. (e)(2). Pub. L. 108–311, § 310(c)(2)(A), substituted “2010” for “2008” in heading and text.
Subsec. (g)(2). Pub. L. 108–311, § 310(c)(2)(B), substituted “2010” for “2008”.
2000—Subsec. (b). Pub. L. 106–554, § 1(a)(7) [title I, § 164(b)(1)], substituted “2004” for “2003” wherever appearing.
Subsec. (c). Pub. L. 106–554, § 1(a)(7) [title I, § 116(b)(5)], substituted “section 1397C” for “section 1397B” in introductory provisions and in par. (2).
Subsec. (e)(2). Pub. L. 106–554, § 1(a)(7) [title I, § 164(b)(2)], substituted “2008” for “2007” in heading and text.
Subsec. (g)(2). Pub. L. 106–554, § 1(a)(7) [title I, § 164(b)(2)], substituted “2008” for “2007”.
1998—Subsec. (b)(5). Pub. L. 105–206, § 6008(c)(1), added par. (5).
Subsec. (b)(6). Pub. L. 105–206, § 6008(c)(2), substituted “(4)(A)(i) or (ii)” for “(4)(A)(ii)”.
Subsec. (c). Pub. L. 105–206, § 6008(c)(3), struck out “entity which is an” before “enterprise zone” in introductory provisions.
Subsec. (d)(2). Pub. L. 105–206, § 6008(c)(4), inserted “as determined on the basis of the 1990 census” after “percent”.
Amendment by Pub. L. 111–312applicable to property acquired or substantially improved after Dec. 31, 2009, see section 754(e)(3) ofPub. L. 111–312, set out as a note under section 1400 of this title.
Pub. L. 110–343, div. C, title III, § 322(c)(3),Oct. 3, 2008, 122 Stat. 3874, provided that:
Pub. L. 109–432, div. A, title I, § 110(c)(3),Dec. 20, 2006, 120 Stat. 2940, provided that:
We truncate results at 20000 items. After that, you're on your own. Zero Percent Capital Gains Rate : 2007-05-04
Zero Percent Capital Gains Rate : 2001-01-12
Empowerment Zone - Other definitions and special rules : 2000-02-11
DC Zone Business : 2000-02-11