[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 364 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 364

 To amend the Internal Revenue Code of 1986 to modify the involuntary 
       conversion rules for certain disaster-related conversions.


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                   IN THE SENATE OF THE UNITED STATES

             February 16 (legislative day, January 5), 1993

 Mrs. Feinstein (for herself and Mrs. Boxer) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to modify the involuntary 
       conversion rules for certain disasterrelated conversions.

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

SECTION 1. MODIFICATION OF INVOLUNTARY CONVERSION RULES FOR CERTAIN 
              DISASTER-RELATED CONVERSIONS.

    (a) In General.--Section 1033 of the Internal Revenue Code of 1986 
(relating to involuntary conversions) is amended by redesignating 
subsection (h) as subsection (i) and by inserting after subsection (g) 
the following new subsection:
    ``(h) Special Rules for Principal Residences Damaged by 
Presidentially Declared Disasters.--
          ``(1) In general.--If the taxpayer's principal residence or 
        any of its contents is compulsorily or involuntarily converted 
        as a result of a Presidentially declared disaster--
                    ``(A) Treatment of insurance proceeds.--
                            ``(i) Exclusion for unscheduled personal 
                        property.--No gain shall be recognized by 
                        reason of the receipt of any insurance proceeds 
                        for personal property which was part of such 
                        contents and which was not scheduled property 
                        for purposes of such insurance.
                            ``(ii) Other proceeds treated as common 
                        fund.--In case of any insurance proceeds (not 
                        described in clause (i)) for such residence or 
                        contents--
                                    ``(I) such proceeds shall be 
                                treated as received for the conversion 
                                of a single item of property, and
                                    ``(II) any property which is 
                                similar or related in service or use to 
                                the residence so converted (or contents 
                                thereof) shall be treated for purposes 
                                of subsection (a)(2) as property 
                                similar or related in service or use to 
                                such single item of property.
                    ``(B) Extension of replacement period.--Subsection 
                (a)(2)(B) shall be applied with respect to any property 
                so converted by substituting `4 years' for `2 years'.
            ``(2) Presidentially declared disaster.--For purposes of 
        this subsection, the term `Presidentially declared disaster' 
        means any disaster which, with respect to the area in which the 
        residence is located, resulted in a subsequent determination by 
        the President that such area warrants assistance by the Federal 
        Government under the Robert T. Stafford Disaster Relief and 
        Emergency Assistant Act.
            ``(3) Principal residence.--For purposes of this 
        subsection, the term `principal residence' has the same meaning 
        as when used in section 1034, except that no ownership 
        requirement shall be imposed.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to property compulsorily or involuntarily converted as a result 
of disasters for which the determination referred to in section 
1033(h)(2) of the Internal Revenue Code of 1986 (as added by this 
section) is made on or after September 1, 1991, and to taxable years 
ending on or after such date.

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