§ 1400F. Renewal community capital gain
(a)
General rule
Gross income does not include any qualified capital gain from the sale or exchange of a qualified community asset held for more than 5 years.
(b)
Qualified community asset
For purposes of this section—
(2)
Qualified community stock
(A)
In general
Except as provided in subparagraph (B), the term “qualified community stock” means any stock in a domestic corporation if—
(i)
such stock is acquired by the taxpayer after December 31, 2001, and before January 1, 2010, at its original issue (directly or through an underwriter) from the corporation solely in exchange for cash,
(3)
Qualified community partnership interest
The term “qualified community partnership interest” means any capital or profits interest in a domestic partnership if—
(A)
such interest is acquired by the taxpayer after December 31, 2001, and before January 1, 2010, from the partnership solely in exchange for cash,
(B)
as of the time such interest was acquired, such partnership was a renewal community business (or, in the case of a new partnership, such partnership was being organized for purposes of being a renewal community business), and
(C)
during substantially all of the taxpayer’s holding period for such interest, such partnership qualified as a renewal community business.
A rule similar to the rule of paragraph (2)(B) shall apply for purposes of this paragraph.
(4)
Qualified community business property
(A)
In general
The term “qualified community business property” means tangible property if—
(c)
Qualified capital gain
For purposes of this section—
(1)
In general
Except as otherwise provided in this subsection, the term “qualified capital gain” means any gain recognized on the sale or exchange of—
(d)
Certain rules to apply
For purposes of this section, rules similar to the rules of paragraphs (5), (6), and (7) of subsection (b), and subsections (f) and (g), of section
1400B shall apply; except that for such purposes section
1400B
(g)(2) shall be applied by substituting “January 1, 2002” for “January 1, 1998” and “December 31, 2014” for “December 31, 2014”.
(e)
Regulations
The Secretary shall prescribe such regulations as may be appropriate to carry out the purposes of this section, including regulations to prevent the abuse of the purposes of this section.