Economic Development Act of 1988

[AI summary unavailable — showing source text] Economic Development Act of 1988 - Title I: Provisions Relating to Capital Gains - Amends the Internal Revenue Code to provide for the nonrecognition of gain, upon taxpayer election, in certain cases involving the sale or exchange of any of the following, which must have been held continuously by the taxpayer during the five years preceding the sale or exchange: (1) an interest as a proprietor in a proprietorship, or as a partner in a closely held partnership (the taxpayer holds at least 80 percent of the capital interest); (2) stock in a closely held corporation (the taxpayer holds at least 80 percent of the value of the stock); or (3) property used by a proprietor in the business of the proprietorship. Permits such nonrecognition of gain only when, within 18 months of the given sale or exchange, the taxpayer either purchases like interest, stock, or property or makes a nondeductible contribution to an individual retirement plan. Increases from one year to two years the holding period required for long-term capital gain treatment of property acquired after January 1, 1988. Allows a noncorporate taxpayer a capital gains income tax deduction equal to: (1) 50 percent for assets held …