Security Reinvestment Act

[AI summary unavailable — showing source text] Security Reinvestment Act - Amends the Internal Revenue Code to permit a taxpayer to elect the nonrecognition of gain from a sale of securities if such taxpayer purchases replacement securities within 18 months of the sale of the original securities. Provides that the basis of the replacement securities shall be reduced by the amount of gain realized from the sale of the original securities. Treats any gain from the sale of the replacement securities as personal service income, subject to a 50 percent maximum tax rate. Limits, according to a formula based upon the number of years a taxpayer holds the replacement securities, the tax which can be levied on a gain from the sale of replacement securities. Establishes a three year statute of limitation for assessing tax deficiencies under this Act. Permits a taxpayer to offset against taxable income all losses from the sale of replacement securities, regardless of present ceilings on capital losses. Repeals limitations on allowable deductions for interest payments on investment indebtedness.…