[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5251 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 5251
To amend the Internal Revenue Code of 1986 to allow a deduction for
investment advisory expenses of certain funeral and cemetery trusts
during suspension of miscellaneous itemized deductions, and for other
purposes.
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IN THE HOUSE OF REPRESENTATIVES
August 22, 2023
Mr. Ferguson (for himself and Ms. Sanchez) introduced the following
bill; which was referred to the Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to allow a deduction for
investment advisory expenses of certain funeral and cemetery trusts
during suspension of miscellaneous itemized deductions, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. DEDUCTION FOR INVESTMENT ADVISORY EXPENSES OF CERTAIN
FUNERAL AND CEMETERY TRUSTS ALLOWED DURING SUSPENSION OF
MISCELLANEOUS ITEMIZED DEDUCTIONS.
(a) In General.--Section 67(g) of the Internal Revenue Code of 1986
is amended--
(1) by striking ``Notwithstanding'' and inserting the
following:
``(1) In general.--Notwithstanding'', and
(2) by adding at the end the following new paragraph:
``(2) Deduction for investment advisory expenses of certain
funeral and cemetery trusts allowed during suspension.--In the
case of any qualified funeral trust (as defined in section
685(b)) or cemetery perpetual care fund (described in section
642(i) and meeting the requirements of paragraphs (1) and (2)
thereof), subsection (a) and paragraph (1) of this subsection
shall not apply to any deduction allowed for investment
advisory expenses for a taxable year beginning after December
31, 2023, and before January 1, 2030.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2023.
SEC. 2. SPECIAL RULE FOR DISTRIBUTIONS BY CEMETERY PERPETUAL FUNDS
INDEXED TO INFLATION.
(a) In General.--Section 642(i) of the Internal Revenue Code of
1986 is amended to read as follows:
``(i) Certain Distributions by Cemetery Perpetual Care Funds.--
``(1) In general.--In the case of a cemetery perpetual care
fund which--
``(A) was created pursuant to local law by a
taxable cemetery corporation for the care and
maintenance of cemetery property, and
``(B) is treated for the taxable year as a trust
for purposes of this subchapter, any amount distributed
by such fund for the care and maintenance of gravesites
which have been purchased from the cemetery corporation
before the beginning of the taxable year of the trust
and with respect to which there is an obligation to
furnish care and maintenance shall be considered to be
a distribution solely for purposes of sections 651 and
661, but only to the extent that the aggregate amount
so distributed during the taxable year does not exceed
$25 multiplied by the aggregate number of such
gravesites.
``(2) Inflation adjustment.--In the case of any taxable
year to which this subsection applies and which begins after
2024, the $25 amount in paragraph (1)(A) shall be increased by
an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2023' for `calendar year 2016' in
subparagraph (A)(ii) thereof.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2023.
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