A bill to amend the Internal Revenue Code of 1954 to provide for the nonrecognition of gain on the sale of property if the proceeds are used to acquire a small business equity interest.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to permit the nonrecognition of gain from the sale of any property, except to the extent that the amount realized from the sale exceeds the cost of common or preferred stock of a qualified small business corporation purchased by the taxpayer within one year after the date of such sale. Defines "qualified small business corporation" as a small business corporation whose passive investment income, for the taxable year or for any of the three subsequent taxable years, does not exceed 15 percent of its gross receipts. Requires a reduction of the basis of such stock by the amount of gain not recognized. Prescribes a three-year statute of limitations for the assessment of any deficiency attributable to gain realized by the sale of such property.…