A bill to clarify the taxation of cooperative apartments.

Amends the Internal Revenue Code to treat any legal entity which holds stock in a cooperative housing corporation as a tenant-stockholder (present law restricts such treatment to individuals).

Requires a person who acquires stock in a cooperative housing corporation by operation of law (e.g., bankruptcy or inheritance) or an original seller to the corporation to obtain prior permission from the corporation to occupy the dwelling unit associated with the stock. Entitles the cooperative housing corporation to approve changes in occupancy where legal entities other than individuals own stock in the corporation.

Allows a tenant-stockholder to carryover unused depreciation deductions in excess of basis to taxable years in which sufficient basis exists. Prohibits a tenant-stockholder from deducting a payment to a cooperative housing corporation which is used by the corporation for capital purposes (i.e., major improvements). Permits a tenant-stockholder to add such payments to the basis in his stock in the corporation.