S. 2123

119th CONGRESS 1st Session

To direct the Federal Communications Commission to take certain actions to increase diversity of ownership in the broadcasting industry, and for other purposes.

IN THE SENATE OF THE UNITED STATES · June 18, 2025 · Sponsor: Mr. Peters · Committee: Committee on Finance

Table of contents

• S. 2123
  • Sec. 1071. Nonrecognition of gain or loss from sale of interest in certain broadcast stations.

Sec. 1071. Nonrecognition of gain or loss from sale of interest in certain broadcast stations.

• (a) Nonrecognition of Gain or Loss
  • If a sale of an interest in a broadcast station, within the meaning of section 346 of the Communications Act of 1934, is certified by the Federal Communications Commission under such section, such sale shall, if the taxpayer so elects, be treated as an involuntary conversion of such property within the meaning of section 1033. For purposes of such section as made applicable by the provisions of this section, stock of a corporation operating a broadcast station shall be treated as property similar or related in service or use to the property so converted. The part of the gain, if any, on such sale to which section 1033 is not applied shall nevertheless not be recognized, if the taxpayer so elects, to the extent that it is applied to reduce the basis for determining gain or loss on any such sale, of a character subject to the allowance for depreciation under section 167, remaining in the hands of the taxpayer immediately after the sale, or acquired in the same taxable year. The manner and amount of such reduction shall be determined under regulations prescribed by the Secretary. Any election made by the taxpayer under this section shall be made by a statement to that effect in his return for the taxable year in which the sale takes place, and such election shall be binding for the taxable year and all subsequent taxable years.
• (b) Minimum holding period; continued management
  • If—
    • there is nonrecognition of gain or loss to a taxpayer under this section with respect to a sale of property (determined without regard to this paragraph), and
    • the taxpayer ceases to fulfill any requirements of the rules adopted by the Federal Communications Commission under paragraph (2) or (4) of section 346(d) of the Communications Act of 1934 (as such rules are in effect on the date of such sale),
  • there shall be no nonrecognition of gain or loss under this section to the taxpayer with respect to such sale, except that any gain or loss recognized by the taxpayer by reason of this subsection shall be taken into account as of the date on which the taxpayer so ceases to fulfill such requirements.
• (c) Basis
  • For basis of property acquired on a sale treated as an involuntary conversion under subsection (a), see section 1033(b).