Miscellaneous Revenue Act of 1980

(Measure passed Senate, amended)

Miscellaneous Revenue Act of 1980 - Title I: Amendments Relating to Income Tax Generally - Amends the Internal Revenue Code to provide that in cases where married couples live apart at all times during the calendar year, do not file a joint return, report earned income which is community income under State or foreign community property laws, and do not transfer such income between themselves before the close of the calendar year, such community income shall be treated in the same manner as community income of a U.S. citizen who is married to a nonresident alien is treated for Federal income tax purposes (income is attributable to the individual spouse who earns it).

Permits a taxpayer election to amortize, based on a period of not less than 60 months, start-up expenses incurred in the creation or acquisition of an active business.

Treats income from the lease of certain spacecraft as income from sources within the United States for purposes of the income tax.

Imposes upon the non-exempt income of homeowners associations a 30 percent income tax.

Provides that any income received or accrued by a tax-exempt mutual or cooperative electric or telephone company from qualified pole rentals, or by a cooperative telephone company from the sale of display listings in a directory furnished to company members, shall not be treated as unrelated business income subject to tax, nor shall any such income be recognized in determining the eligibility of such companies for tax-exempt status. Defines "qualified pole rental" as any rental of a pole or other structure used to support wires if: (1) such pole or structure is used by the telephone or electric company in providing telephone or electric services to its members; and (2) the use of such pole or structure pursuant to the rental is in connection with the transmission by wire of electricity or of telephone or other communications.

Provides for a tax refund of amounts included in the gross incomes of State police officers as cash meal allowances during calendar years 1974, 1975, 1976, and 1977.

Exempts amounts paid as entertainment expenses which are includible in the gross income of the recipient, who is not an employee of the taxpayer, from the requirement that such expenses be shown to be directly related to the active conduct of the taxpayer trade or business in order to qualify for tax deductibility. Qualifies for investment tax credit treatment property used by the International Telecommunications Satellite Consortium, the International Maritime Satellite Organization, and any successor organization.

Provides that with respect to any sale of real property by a tax-exempt organization, indebtedness incurred by such organization to finance the acquisition or improvement of such property shall not be treated as acquisition indebtedness for purposes of the tax on the unrelated business income of such organization. Stipulates that such tax treatment shall not be precedent for extending similar treatment to any other person.

Title II: Amendments Relating to Pension Plans - Amends the Internal Revenue Code to revise the existing tax treatment of employee stock ownership plans with respect to: (1) stock bonus plans which provide a cash distribution option to participants; (2) the limitation on annual additions to participant accounts under employee stock ownership plans; (3) valuation of employer securities in stock ownership plans; (4) participation of subsidiary corporations in tax credit employee stock ownership plans; (5) participation rules for certain tax credit employee stock ownership plans; and (6) the application of cash or deferred arrangement rules to cafeteria plans.

Eliminates the withholding tax on income from pensions paid to nonresident aliens if such individual's country of residence grants a substantially equivalent exemption to U.S. citizens and such individual's country is a "beneficiary developing country" under the Trade Act of 1974.

Title III: Amendments Relating to Estate Tax - Extends, through December 31, 1981, the period during which agreements governing the transfer of estate assets for public, charitable, and religious uses may be amended to meet the requirements for a gift of a split interest to charity. Provides that such agreements shall apply to wills executed before December 31, 1978.

Title IV: Miscellaneous Amendments - Terminates retroactively certain waiver of social security coverage certificates filed by corporations within specified time periods.

Treats certain authors or artists under contract with a corporation as employees of such corporation (for fringe benefit purposes) for taxable years beginning after December 31, 1980, if: (1) such individuals were, on December 31, 1977, participants in qualified pension plans of the corporation; (2) the employment contract is a "first refusal" or "best efforts" contract; and (3) the corporation's pension plans meet certain specified requirements.