[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1060 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1060

To amend the Internal Revenue Code of 1986 to extend the period for the 
 rollover of gain on the sale of a principal residence for the period 
      the taxpayer has substantial frozen deposits in a financial 
                              institution.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 23, 1993

   Mr. Reed introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to extend the period for the 
 rollover of gain on the sale of a principal residence for the period 
      the taxpayer has substantial frozen deposits in a financial 
                              institution.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXTENSION OF TIME FOR PURCHASE OF NEW RESIDENCE UNDER 
              SECTION 1034.

    (a) General Rule.--Section 1034 of the Internal Revenue Code of 
1986 (relating to rollover of gain on sale of principal residence) is 
amended by redesignating subsection (l) as subsection (m) and by 
inserting after subsection (k) the following new subsection:
    ``(l) Extension Where Taxpayer Has Substantial Frozen Deposits.--
            ``(1) In general.--The running of any period of time 
        specified in subsection (a) or (c) (other than the 2 years 
        referred to in subsection (c)(4)) shall be suspended during any 
        time that the taxpayer has substantial frozen deposits after 
        the date of the sale of the old residence; except that any such 
        period of time as so suspended shall not extend beyond the date 
        5 years after the date of the sale of the old residence.
            ``(2) Substantial frozen deposits.--For purposes of this 
        subsection--
                    ``(A) In general.--A taxpayer shall be treated as 
                having substantial frozen deposits for any period 
                during which the aggregate frozen deposits of the 
                taxpayer exceed 50 percent of the net amount realized 
                from the sale of the old residence.
                    ``(B) Frozen deposit.--The term `frozen deposit' 
                means deposit in a financial institution if such 
                deposit may not be withdrawn (during a period of at 
                least 5 days) because of--
                            ``(i) the bankruptcy or insolvency of a 
                        financial institution, or
                            ``(ii) any requirement imposed by the State 
                        in which such institution is located by reason 
                        of the bankruptcy or insolvency (or threat 
                        thereof) of 1 or more financial institutions in 
                        such State.
                    ``(C) Net amount realized.--The net amount realized 
                from the sale of the old residence is the amount 
                realized from the sale of the old residence reduced--
                            ``(i) as provided in subsection (b)(1), and
                            ``(ii) by the amount of any indebtedness of 
                        the taxpayer which was secured by the old 
                        residence.
            ``(3) Treatment of married individuals.--If the old 
        residence and the new residence are each used by the taxpayer 
        and the spouse of the taxpayer as their principal residence, 
        such individuals shall be treated as one taxpayer for purposes 
        of this subsection.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to--
            (1) any residence sold or exchanged after December 31, 
        1990, and
            (2) any residence sold or exchanged on or before such date 
        if the period specified in section 1034(a) of the Internal 
        Revenue Code of 1986 (without regard to the amendment made by 
        subsection (a)) has not expired before January 1, 1991.

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