A bill to amend the Internal Revenue Code of 1954 to provide that sales of nonproductive assets will not be eligible for capital gains treatment.

Amends the Internal Revenue Code to provide that for purposes of the alternative tax on corporations and the capital gains deduction for individuals, the sale of nonproductive assets will not qualify for capital gains tax treatment.

Defines "productive asset" for purposes of this Act. Specifies that farm real property will not be considered a productive asset unless the taxpayer materially participated in the operation of the business and the taxpayer or a renter engaged in substantial farming activities on such property. Excludes from the definition of productive asset stock held by certain holding corporations.