[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 379 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 379

  To amend the Internal Revenue Code of 1986 to increase the rollover 
period on principal residences for taxpayers whose assets are frozen in 
                        financial institutions.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             February 17 (legislative day, January 5), 1993

  Mr. Chafee 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 increase the rollover 
period on principal residences for taxpayers whose assets are frozen in 
                        financial institutions.

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

SECTION 1. 2-YEAR ROLLOVER PERIOD FOR PRINCIPAL RESIDENCE INCREASED FOR 
              TAXPAYERS WITH FROZEN DEPOSITS.

    (a) In General.--Section 1034 (relating to the rollover of gain on 
the sale of principal residence) is amended by redesignating subsection 
(l) as subsection (m) and by inserting after subsection (k) the 
following new subsection:
    (l) Individual With Substantial Frozen Deposits.--
            ``(l) 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 
        4 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 30 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 1 day) 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.''

SEC. 2. 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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