Small Business Participating Debentures Act of 1980

Summary

Small Business Participating Debentures Act of 1980 - Amends the Internal Revenue Code to apply long-term capital gains treatment to amounts actually paid to a taxpayer in respect to a small business participating debenture which constitute the distribution of a share of the earnings of the issuer. Defines "small business participating debenture" (SBPD) as a written debt instrument issued by a qualified small business which: (1) is a general obligation of such business; (2) bears interest at not less than specified by the Secretary of the Treasury; (3) has a fixed maturity; (4) grants no voting or conversion rights in the business to the purchaser; and (5) provides for the payment of a share of the issuer's total earnings. Limits "qualified small business" to one (whether or not incorporated): (1) whose equity capital does not exceed $25,000,000; (2) the face value of all of whose outstanding SBPD's does not exceed $1,000,000; and (3) which has no outstanding securities subject to regulation by the Securities and Exchange Commission. Treats members of a controlled group of corporations as a single taxpayer. Denies capital gains treatment where the taxpayer is a "related party" to the SBPD issuing corporation. Treats losses on small business participating debentures as ordinary losses. Allows an interest expense deduction for interest and share-of-earnings payments made on such debentures.

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Timeline

1. 31 July 1980

   Introduced

   Referred to House Committee on Ways and Means.

   Source: IntroReferral

2. 31 July 1980

   Introduced

   Introduced in House

   Source: IntroReferral

3. 31 July 1980

   Introduced

   Introduced in House

   Source: IntroReferral

Votes

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Versions

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Documents

1 official file

• Introduced in House

  summary · EN · 31 July 1980

  Open at official source

Sponsors

• Rep. Smith, Neal Edward [D-IA-4] · D · Sponsor
• Rep. Ferraro, Geraldine A. [D-NY-9] · D · Cosponsor
• Rep. Hall, Tony P. [D-OH-3] · D · Cosponsor
• Rep. Roth, Toby [R-WI-8] · R · Cosponsor
• Rep. Spellman, Gladys Noon [D-MD-5] · D · Cosponsor
• Rep. Johnson, Harold T. [D-CA-1] · D · Cosponsor
• Rep. Bedell, Berkley W. [D-IA-6] · D · Cosponsor
• Rep. Williams, Pat [D-MT-At Large] · D · Cosponsor
• Rep. Fisher, Joesph L. [D-VA-10] · D · Cosponsor
• · hswm00 · Standing

Related records

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