26-U.S.C.-1400F
§1400F – Renewal Community Capital Gain
Pathway
Title 26 > Subtitle A > Chapter 1 > Subchapter X > Part II > Section 1400F
Details
- Reference: Section 1400F
- Legend: §1400F – Renewal Community Capital Gain
- USCode Year: 2013
Provision Content
(a) General rule
Gross income does not include any qualified capital gain from the sale or exchange of a qualified community asset held for more than 5 years.
(b) Qualified community asset
For purposes of this section—
(1) In general
The term qualified community asset means—
(A) any qualified community stock,
(B) any qualified community partnership interest, and
(C) any qualified community business property.
(2) Qualified community stock
(A) In general
Except as provided in subparagraph (B), the term qualified community stock means any stock in a domestic corporation if—
(i) such stock is acquired by the taxpayer after December 31, 2001, and before January 1, 2010, at its original issue (directly or through an underwriter) from the corporation solely in exchange for cash,
(ii) as of the time such stock was issued, such corporation was a renewal community business (or, in the case of a new corporation, such corporation was being organized for purposes of being a renewal community business), and
(iii) during substantially all of the taxpayers holding period for such stock, such corporation qualified as a renewal community business.
(B) Redemptions
A rule similar to the rule of section 1202(c)(3) shall apply for purposes of this paragraph.
(3) Qualified community partnership interest
The term qualified community partnership interest means any capital or profits interest in a domestic partnership if—
(A) such interest is acquired by the taxpayer after December 31, 2001, and before January 1, 2010, from the partnership solely in exchange for cash,
(B) as of the time such interest was acquired, such partnership was a renewal community business (or, in the case of a new partnership, such partnership was being organized for purposes of being a renewal community business), and
(C) during substantially all of the taxpayers holding period for such interest, such partnership qualified as a renewal community business.
A rule similar to the rule of paragraph (2)(B) shall apply for purposes of this paragraph.
(4) Qualified community business property
(A) In general
The term qualified community business property means tangible property if—
(i) such property was acquired by the taxpayer by purchase (as defined in section 179(d)(2)) after December 31, 2001, and before January 1, 2010,
(ii) the original use of such property in the renewal community commences with the taxpayer, and
(iii) during substantially all of the taxpayers holding period for such property, substantially all of the use of such property was in a renewal community business of the taxpayer.
(B) Special rule for substantial improvements
The requirements of clauses (i) and (ii) of subparagraph (A) shall be treated as satisfied with respect to—
(i) property which is substantially improved by the taxpayer before January 1, 2010, and
(ii) any land on which such property is located.
The determination of whether a property is substantially improved shall be made under clause (ii) of section 1400B(b)(4)(B), except that December 31, 2001 shall be substituted for December 31, 1997 in such clause.
(c) Qualified capital gain
For purposes of this section—
(1) In general
Except as otherwise provided in this subsection, the term qualified capital gain means any gain recognized on the sale or exchange of—
(A) a capital asset, or
(B) property used in the trade or business (as defined in section 1231(b)).
(2) Gain before 2002 or after 2014 not qualified
The term qualified capital gain shall not include any gain attributable to periods before January 1, 2002, or after December 31, 2014.
(3) Certain rules to apply
Rules similar to the rules of paragraphs (3), (4), and (5) of section 1400B(e) shall apply for purposes of this subsection.
(d) Certain rules to apply
For purposes of this section, rules similar to the rules of paragraphs (5), (6), and (7) of subsection (b), and subsections (f) and (g), of section 1400B shall apply; except that for such purposes section 1400B(g)(2) shall be applied by substituting January 1, 2002 for January 1, 1998 and December 31, 2014 for December 31, 2014.
(e) Regulations
The Secretary shall prescribe such regulations as may be appropriate to carry out the purposes of this section, including regulations to prevent the abuse of the purposes of this section.
(Added Pub. L. 106–554, §1(a)(7) [title I, §101(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–594; amended Pub. L. 108–311, title III, §310(c)(2)(C), Oct. 4, 2004, 118 Stat. 1180; Pub. L. 109–432, div. A, title I, §110(c)(2)(C), Dec. 20, 2006, 120 Stat. 2940; Pub. L. 110–343, div. C, title III, §322(c)(2)(C), Oct. 3, 2008, 122 Stat. 3874.)
Amendments
2008—Subsec. (d). Pub. L. 110–343 substituted 2014′. for 2012′..
2006—Subsec. (d). Pub. L. 109–432 substituted 2012 for 2010.
2004—Subsec. (d). Pub. L. 108–311 substituted 2010 for 2008.
Effective Date of 2004 Amendment
Amendment by Pub. L. 108–311 effective Jan. 1, 2004, see section 310(e)(1) of Pub. L. 108–311, set out as a note under section 1400 of this title.
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