Tax Shelter Reform Act of 1984

Summary

Tax Shelter Reform Act of 1984 - Amends the Internal Revenue Code to deny an income tax deduction for certain property where a taxpayer uses property of another for personal purposes and such other person uses similar property of the taxpayer for personal purposes. Imposes an addition to income tax or estate or gift tax where a court (including the United States Claims Court and the Tax Court) makes a final determination that property has been significantly overvalued or undervalued. Sets forth the method for calculating such tax. Establishes an alternative minimum taxable floor for purposes of computing the alternative minimum tax for taxpayers other than corporations. Requires that the alternative minimum taxable income shall not be less than such minimum taxable floor. Sets forth the method of calculating such minimum taxable floor. Provides that for purposes of such calculation deductions attributable to property held for the production of income or to a trade or business shall not be taken into account to the extent that the deductions from such activities exceed the gross income attributable to such activities. Limits the basis of passenger automobiles to $15,000 for purposes of determining the amount of depreciation and investment tax credit allowable. Allows for an automobile price inflation adjustment (if required) for the calendar year in which the automobile is placed in service. Limits the amount that can be deducted as an ordinary and necessary business expense for leasing automobiles for periods longer than one month. Denies an income tax deduction for interest paid or incurred to purchase or carry certain short-term obligations except to the extent that the taxpayer declares any interest income from such short-term securities. Requires any corporation or partnership organized for tax shelter purposes to file with the Secretary of the Treasury a duplicate of any materials required to be filed with the Securities and Exchange Commission. Requires the Secretary to conduct a study of tax shelters and report the results to specified committees of the Congress not later than December 1, 1984.

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1 official file

• Introduced in Senate

  summary · EN · 22 February 1984

  Open at official source

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