Capital Formation Act of 1997

Summary

TABLE OF CONTENTS: Title I: Capital Gains Reform Subtitle A: Capital Gains Deduction for Taxpayers Other Than Corporations Subtitle B: Capital Gains Reduction for Corporations Subtitle C: Capital Loss Deduction Allowed With Respect to Sale or Exchange of Principal Residence Title II: Small Business Venture Capital Stock Capital Formation Act of 1997 - Title I: Capital Gains Reform - Subtitle A: Capital Gains Deduction for Taxpayers Other Than Corporations - Amends the Internal Revenue Code to make, for noncorporate taxpayers, 50 percent of net capital gains deductible from gross income. Allows the deduction in computing adjusted gross income. Subtitle B: Capital Gains Reduction for Corporations - Reduces the alternative capital gains tax for corporations. Subtitle C: Capital Loss Deduction Allowed With Respect to Sale or Exchange of Principal Residence - Allows an individual to deduct losses arising from the sale or exchange of the taxpayer's principal residence. Title II: Small Business Venture Capital Stock - Increases from 50 percent to 75 percent the exclusion of any gain from the sale or exchange of qualified small business stock held more than three (currently, five) years and applies the exclusion to corporate as well as noncorporate taxpayers. Repeals the minimum tax preference. Increases the dollar gross asset limits domestic C corporations must not exceed in order to qualify for the exclusion as small businesses and institutes an inflation adjustment for those limits. Removes provisions relating to a per-issuer limitation on a taxpayer's eligible gain. Modifies working capital provisions and the definition of "qualified trade or business," both with regard to meeting the active business requirement and to requirements regarding purchases by a corporation of its own stock. Permits, as specified, the rollover of gain from the sale of qualified small business stock to another small business stock.

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3 official files

• Introduced in Senate (text)

  Introduced in Senate · EN · 21 January 1997

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• Introduced in Senate (PDF)

  Introduced in Senate · EN · 21 January 1997

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• Introduced in Senate

  summary · EN · 21 January 1997

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