H.R. 868House110th Congress (2007-2009)In Committee

Family Small Business Tax Fairness Act of 2007

Introduced February 7, 2007

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

February 7, 2007

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HouseIntro Referral

Introduced in House

February 7, 2007

HouseIntro Referral

Referred to the House Committee on Ways and Means.

February 7, 2007

Floor Debate

4 members

What members said about H.R. 868 on the floor

1 Republican3 Democrats
Raúl M. Grijalva
Rep. Raúl M. GrijalvaD-AZ-7 · Feb 12, 2008

Mr. Speaker, I move to suspend the rules and agree to the resolution (H. Res. 868) recognizing the 100th anniversary of the declaration of Muir Woods National Monument by President Theodore…

Lynn C. Woolsey
Rep. Lynn C. WoolseyD-CA-6 · Feb 12, 2008

Mr. Speaker, my district, just across the Golden Gate Bridge north of San Francisco, includes 100 percent of Marin County and 80 percent of Sonoma County, where we are blessed with many environmental…

Loretta Sanchez
Rep. Loretta SanchezD-CA-47 · Feb 12, 2008

Mr. Speaker, I rise in strong support of H.R. 868, honoring the 100 year anniversary of the Muir Woods National Monument. Throughout his life, John Muir was concerned with protecting nature to…

Rob Bishop
Rep. Rob BishopR-UT-1 · Feb 12, 2008

Mr. Speaker, the gentleman from Arizona has adequately explained the bill. I reserve the balance of my time. Mr. Speaker, I yield back the balance of my time.

Bill Text

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Introduced in HouseIssued February 7, 2007

I

110th CONGRESS

1st Session

H. R. 868

IN THE HOUSE OF REPRESENTATIVES

February 7, 2007

Mr. Doggett (for himself, Mr. Becerra, Mr. Blumenauer, Mr. Davis of Illinois, Ms. DeLauro, Mr. Filner, Mr. Gene Green of Texas, Mr. Grijalva, Mr. Hinojosa, Mr. Holt, Mr. Kind, Mr. Larson of Connecticut, Mr. Lewis of Georgia, Mr. McDermott, Mr. McGovern, Mr. Meek of Florida, Mr. Moore of Kansas, Mrs. Napolitano, Mr. Neal of Massachusetts, Mr. Kennedy, Mr. Pascrell, Ms. Schwartz, Mr. Sherman, Mr. Stark, Mr. Thompson of California, Mrs. Jones of Ohio, Ms. Velázquez, and Mr. Rodriguez) 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 a married couple who operates a unincorporated business as co-owners to file separate self-employment tax returns.

1.

Short title

This Act may be cited as the Family Small Business Tax Fairness Act of 2007.

2.

Unincorporated businesses operated by husband and wife as co-owners

(a)

In general

Section 761 of the Internal Revenue Code of 1986 (defining terms for purposes of partnerships) is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection:

(f)

Qualified joint venture

(1)

In general

In the case of a qualified joint venture conducted by a husband and wife who file a joint return for the taxable year, for purposes of this title—

(A)

such joint venture shall not be treated as a partnership,

(B)

all items of income, gain, loss, deduction, and credit shall be divided between the spouses in accordance with their respective interests in the venture, and

(C)

each spouse shall take into account such spouse’s respective share of such items as if they were attributable to a trade or business conducted by such spouse as a sole proprietor.

(2)

Qualified joint venture

For purposes of paragraph (1), the term qualified joint venture means any joint venture involving the conduct of a trade or business if—

(A)

the only members of such joint venture are a husband and wife,

(B)

both spouses materially participate (within the meaning of section 469(h) without regard to paragraph (5) thereof) in such trade or business, and

(C)

both spouses elect the application of this subsection.

.

(b)

Net earnings from self-employment

(1)

Subsection (a) of section 1402 of such Code (defining net earnings from self-employment) is amended by striking and at the end of paragraph (15), by striking the period at the end of paragraph (16) and inserting ; and, and by inserting after paragraph (16) the following new paragraph:

(17)

notwithstanding the preceding provisions of this subsection, each spouse’s share of income or loss from a qualified joint venture shall be taken into account as provided in section 761(f) in determining net earnings from self-employment of such spouse.

.

(2)

Subsection (a) of section 211 of the Social Security Act (defining net earnings from self-employment) is amended by striking and at the end of paragraph (15), by striking the period at the end of paragraph (16) and inserting ; and, and by inserting after paragraph (16) the following new paragraph:

(17)

Notwithstanding the preceding provisions of this subsection, each spouse’s share of income or loss from a qualified joint venture shall be taken into account as provided in section 761(f) of the Internal Revenue Code of 1986 in determining net earnings from self-employment of such spouse.

.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.