Summary: H.R.749 — 103rd Congress (1993-1994)All Information (Except Text)

There is one summary for H.R.749. Bill summaries are authored by CRS.

Shown Here:
Introduced in House (02/03/1993)

TABLE OF CONTENTS:

Title I: Modification of Passive Loss Rules

Title II: Provisions Relating to Real Estate Investments

By Pension Funds

Title III: Discharge of Indebtedness

Real Estate Stability and Recovery Amendments Act of 1993 - Title I: Modification of Passive Loss Rules - Amends the Internal Revenue Code to exclude certain rental real estate development activities from treatment as a passive activity for purposes of determining passive activity losses and credits.

Title II: Provisions Relating to Real Estate Investments by Pension Funds - Modifies exceptions to the exclusion of real property acquired by a qualified organization from the meaning of acquisition indebtedness. Makes certain exceptions inapplicable to sales out of foreclosure by a financial institution.

Applies the meaning of acquisition indebtedness to investments in certain large partnerships where the principal purpose of partnership allocation is not tax avoidance.

Repeals the special rule for publicly traded partnerships with respect to the treatment of unrelated business taxable income.

Permits a tax-exempt title-holding company to receive unrelated business taxable income of up to ten percent of its gross income, if the income is incidentally derived from the holding of real property.

Excludes from unrelated business taxable income: (1) gains from the sale, exchange, or other disposition of real property acquired from financial institutions that are in conservatorship or receivership; (2) amounts received or accrued as consideration for entering into agreements to make loans; and (3) all gains on the lapse or termination of options, written by an organization in connection with its investment activities, to buy or sell real property.

Provides for the tax treatment of pension fund investments in real estate investment trusts.

Title III: Discharge of Indebtedness - Excludes from gross income, the income from the discharge of qualified real property business indebtedness. Applies the excluded amount to reduce the basis of the depreciable real property. Limits such amount to the amount of outstanding indebtedness over the fair market value of the property, reduced by any other qualified real estate business indebtedness. Excludes qualified farm indebtedness from the definition of "qualified real property business indebtedness."