S. 5512
Stop Wall Street Looting Act
Sponsor: Elizabeth Warren
Official summary
No official summary yet.
Text of the bill
I Corporate responsibility
II Anti-looting
III Protecting workers when companies go bankrupt
IV Closing tax loopholes
(a) Modification to election To include partnership interest in gross income in year of transfer. Subsection (c) of section 83 is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph:
(4) Partnership interests. Except as provided by the Secretary—
(A) In general. In the case of any transfer of an interest in a partnership in connection with the provision of services to (or for the benefit of) such partnership—
(i) the fair market value of such interest shall be treated for purposes of this section as being equal to the amount of the distribution which the partner would receive if the partnership sold (at the time of the transfer) all of its assets at fair market value and distributed the proceeds of such sale (reduced by the liabilities of the partnership) to its partners in liquidation of the partnership, and
(ii) the person receiving such interest shall be treated as having made the election under subsection (b)(1) unless such person makes an election under this paragraph to have such subsection not apply.
(B) Election. The election under subparagraph (A)(ii) shall be made under rules similar to the rules of subsection (b)(2).
(b) Effective date. The amendments made by this section shall apply to interests in partnerships transferred after the date of enactment of this Act.
V Investor protection and market transparency
VI Restrictions on securitizing risky corporate debt
VII Miscellaneous