[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3861 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3861

To amend the Internal Revenue Code of 1986 to provide, for purposes of 
computing the exclusion of gain on sale of a principal residence, that 
 a member of the Armed Forces of the United States shall be treated as 
    using property as a principal residence while away from home on 
                         extended active duty.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 13, 1998

Mrs. Linda Smith of Washington (for herself and Mr. Hunter) 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 provide, for purposes of 
computing the exclusion of gain on sale of a principal residence, that 
 a member of the Armed Forces of the United States shall be treated as 
    using property as a principal residence while away from home on 
                         extended active duty.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Owners Military Equity Act of 
1998''.

SEC. 2. ARMED FORCES MEMBER TREATED AS USING PRINCIPAL RESIDENCE WHILE 
              AWAY FROM HOME ON ACTIVE DUTY.

    (a) In General.--Section 121(d) of the Internal Revenue Code of 
1986 (relating to special rules) is amended by adding at the end the 
following new paragraph:
            ``(9) Determination of use during periods of active duty 
        with armed forces.--
                    ``(A) In general.--If--
                            ``(i) property is used by an individual as 
                        such individual's principal residence, and
                            ``(ii) at any time after such use, such 
                        individual (or such individual's spouse) serves 
                        for any period on extended active duty with the 
                        Armed Forces of the United States,
                such individual shall be treated as using such property 
                as such individual's principal residence during any 
                portion of such period during which such individual (or 
                spouse) is under military orders to reside in 
                Government quarters or to serve at a duty station 
                outside the area in which such property is located.
                    ``(B) Extended active duty.--For purposes of this 
                paragraph, the term `extended active duty' means any 
                period of active duty pursuant to a call or order to 
                such duty for a period in excess of 90 days or for an 
                indefinite period.''
    (b) Effective Date.--The amendment made by this section shall apply 
to sales or exchanges after May 6, 1997.
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