A bill to exclude from gross income any discharge of a mortgage debt on a principal residence occurring in 1982, and for other purposes.

Summary

Excludes from gross income, for income tax purposes, any discharge of residential mortgage indebtedness which occurred in calendar year 1982. Limits the amount excludible to the adjusted basis of the taxpayer in the principal residence with respect to which the mortgage indebtedness was incurred. Reduces the basis of the principal residence by the amount of any discharge of mortgage indebtedness. Treats any gain recognized from the disposition of a principal residence as ordinary income to the extent such gain does not exceed the amount of the reduction in basis. Suspends the application of Revenue Ruling 82-202 for calendar years 1983 and 1984, (holding that income is realized on the discharge of indebtedness by prepayment of a mortgage balance at a discount). Expresses the sense of the Congress that legislation be enacted which addresses the Federal income tax consequences of discharge of residential mortgage indebtedness that result from prepayment of such indebtedness and which applies to discharge of mortgage indebtedness that occurs after December 31, 1982.

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1 official file

• Introduced in Senate

  summary · EN · 15 April 1983

  Open at official source

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