Bill Text: CA AB876 | 2009-2010 | Regular Session | Amended

California Assembly Bill 876 (Prior Session Legislation)

Bill Title: Income and corporation taxes: capital gains: exclusion.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB876 Detail]

Download: California-2009-AB876-Amended.html

BILL NUMBER: AB 876	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 5, 2009
	AMENDED IN ASSEMBLY  APRIL 14, 2009

INTRODUCED BY   Assembly Member Harkey

                        FEBRUARY 26, 2009

   An act to add Sections 18154 and 24996 to the Revenue and Taxation
Code, relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 876, as amended, Harkey. Income and corporation taxes: capital
gains: exclusion.
   The Personal Income Tax Law and the Corporation Tax Law provide
that gain or loss upon the disposition of a capital asset is
determined by reference to the adjusted basis of that asset.
   This bill would, for taxable years beginning on or after January
1, 2009, provide that gross income does not include any gain from the
sale or exchange of a capital asset, as defined, that is purchased
during the 2009  or 2010  calendar year, and is held for
more than one year.  Net capital losses would not be allowed for
any capital asset purchased during the 2009 or 2010 calendar year.

   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 18154 is added to the Revenue and Taxation
Code, to read:
   18154.  For each taxable year beginning on or after January 1,
2009, gross income shall not include any gain from the sale or
exchange of a capital asset, as defined by Section 1221 of the
Internal Revenue Code, that is purchased during the 2009  or 2010
 calendar year, and is held for more than one year.  Net
capital losses shall not be allowed with respect to any capital asset
that is purchased during the 2009 or 2010 calendar year. 
  SEC. 2.  Section 24996 is added to the Revenue and Taxation Code,
to read:
   24996.  For each taxable year beginning on or after January 1,
2009, gross income shall not include any gain from the sale or
exchange of a capital asset, as defined by Section 1221 of the
Internal Revenue Code, that is purchased during the 2009  or 2010
 calendar year, and is held for more than one year.  Net
capital losses shall not be allowed with respect to any capital asset
that is purchased during the 2009 or 2010 calendar year. 
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.