| | | (2) With respect to all other property, for the | | taxable year immediately following the taxable year | | during which the property was first placed in service, | | the fraction allowed by this paragraph is equal to 5% | | of the amount added back under subsection 1, paragraph | | N with respect to the property. For each subsequent | | taxable year during the recovery period, the fraction | | is equal to 95% of the amount added back under | | subsection 1, paragraph N with respect to the property, | | divided by the number of years in the recovery period | | minus 2. |
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| | | In the case of property expensed pursuant to Section 179 of | | the Code, the term "recovery period" means the recovery | | period that would have been applicable to the property had | Section 179 not been applied. |
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| | | Sec. 6. 36 MRSA §5200-A, sub-§2, ¶P is enacted to read: |
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| | | P.__Capital gains from the sale of property to a person who, | | at the time of the sale, is leasing the property for use as | | a primary residence. |
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| | | Sec. 7. Application. This Act applies to tax years beginning on or | | after January 1, 2005. |
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| | | This bill provides an income tax exemption for capital gains | | for the seller when the sale of property is to a person who, at | | the time of the sale, is leasing the property for use as a | | primary residence. |
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