To amend the Internal Revenue Code of 1986 to modify the involuntary conversion rules for conversions resulting from disasters declared by the President, to exclude from gross income any withdrawal from an individual retirement plan which is used for repairs to or replacement of a principal residence required as a result of such a disaster, and for other purposes.

Summary

Amends the Internal Revenue Code to provide special rules with respect to the nonrecognition of gain for principal residences compulsorily or involuntarily converted as a result of a presidentially-declared disaster. Allows penalty-free distributions from individual retirement plans to repair, rehabilitate, or replace such converted property. Provides for determining the amount of casualty losses based on the reduction in the value of the property resulting from such disasters. Excepts casualty losses attributable to such disasters from the limitation of ten percent of adjusted gross income. Permits the carryback of losses to the second preceding year (currently, only the preceding year). Allows the mortgage interest deduction for one year after a disaster declaration. Allows the destruction of a residence as a result of such disaster to be treated as a sale for rollover of gain rules in lieu of the rules for involuntary conversions. Treats the destruction, theft, seizure, requisition, or condemnation of property as the sale of such property for purposes of the one-time exclusion of gain by individuals who have attained age 55. Provides that such taxpayers shall be treated as continuing to use a principal residence during the period they are unable to occupy the residence because of a presidentially-declared disaster. Provides for allocating lump-sum insurance payments received as a result of such disasters for purposes of determining gross income exclusion. Makes amendments under this Act applicable to presidential declarations made on or after September 1, 1991.

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2 official files

• Introduced in House (text)

  Introduced in House · EN

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• Introduced in House

  summary · EN · 31 March 1992

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