A bill to amend the Internal Revenue Code of 1954 to provide that interest credited on a deposit or account in a bank or other financial institution shall not be included in income if such interest cannot be withdrawn because of a bankruptcy or other insolvency proceeding, to provide that losses suffered by depositors due to bankruptcy or insolvency shall be treated as ordinary losses, and to provide that such losses shall be treated as a business debt.

Summary

Amends the Internal Revenue Code to exclude from gross income any interest credited on a deposit or account in a bank or other financial institution if such interest cannot be withdrawn because of a bankruptcy or other insolvency proceeding. Treats as an ordinary loss any loss of amounts on deposit in an account of a bank or other financial institution on account of the bankruptcy or insolvency of such bank or financial institution. Allows an income tax deduction as a bad debt any loss of amounts on deposit in an account of a bank or other financial institution on account of the bankruptcy or insolvency of such bank or financial institution.

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1 official file

• Introduced in House

  summary · EN · 3 October 1985

  Open at official source

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