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.