H.R.7687

Federal HB7687, the No Tax on Takings Act, excludes from gross income any gain from the conversion of property due to eminent domain.

Federal HB7687, the No Tax on Takings Act, amends the Internal Revenue Code to exclude from gross income any gain from the conversion of property by reason of eminent domain. This applies to conversions occurring in taxable years after the enactment of the Act. The bill also specifies that Section 1033, which deals with involuntary conversions, will not apply to conversions under eminent domain. Taxpayers can opt out of this exclusion if they choose. The Secretary of the Treasury is directed to issue necessary regulations to implement these changes.