Text: H.R.4702 — 103rd Congress (1993-1994)All Information (Except Text)

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Introduced in House (06/30/1994)

 
[Congressional Bills 103th Congress]
[From the U.S. Government Printing Office]
[H.R. 4702 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4702

To amend the Internal Revenue Code of 1986 to allow builders to compute 
    on the installment sales method income from the sale of certain 
           residential real property, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 30, 1994

  Mr. Goodling (for himself, Mr. Doolittle, Mr. Fish, Mr. Murphy, Mr. 
 Rohrabacher, Mr. Underwood, and Mr. Payne of Virginia) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to allow builders to compute 
    on the installment sales method income from the sale of certain 
           residential real property, 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. SHORT TITLE.

    This Act may be cited as the ``First-Time Homebuyers Assistance 
Act''.

SEC. 2. APPLICABILITY OF INSTALLMENT METHOD OF ACCOUNTING TO SALES OF 
              RESIDENTIAL REAL PROPERTY BY BUILDERS.

    (a) In General.--Paragraph (2) of section 453(l) of the Internal 
Revenue Code of 1986 (relating to exceptions to dealer dispositions) is 
amended by redesignating subparagraph (C) as subparagraph (D) and by 
inserting after subparagraph (B) the following new subparagraph:
                    ``(C) Certain residences.--The disposition on the 
                installment plan of any newly constructed 1-family 
                residential real property in the ordinary course of the 
                taxpayer's business if--
                            ``(i) the acquisition cost (as defined in 
                        section 143(k)(3)) does not exceed 75 percent 
                        of the median purchase price for newly 
                        constructed 1-family residential real property 
                        for the statistical area (as defined in section 
                        143(k)(2)) in which the property is located (95 
                        percent in the case of a property in a targeted 
                        area within the meaning of section 143(j)),
                            ``(ii) the face amount of any obligation 
                        held by the taxpayer and arising from the 
                        disposition does not exceed 20 percent of such 
                        acquisition cost,
                            ``(iii) the purchaser of the property is 
                        financially qualified to assume 100 percent of 
                        the obligations arising from the disposition 
                        (without regard to whether such obligations are 
                        held by the taxpayer),
                            ``(iv) the property is to be used by such 
                        purchaser as a principal residence (within the 
                        meaning of section 1034), and
                            ``(v) such purchaser had no present 
                        ownership interest in such a principal 
                        residence during the 3-year period ending on 
                        the date of acquisition of the property.''
    (b) Effect of Pledge of Installment Obligation.--Paragraph (1) of 
section 453A(d) of such Code (relating to pledges, etc., of installment 
obligations) is amended by inserting after ``this section applies'' the 
following: ``(or any installment obligation arising from a disposition 
described in section 453(l)(2)(C))''.
    (c) Effective Date.--The amendments made by this section shall 
apply to sales after the date of the enactment of this Act.
                                 <all>

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