[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4561 Introduced in House (IH)]

  2d Session
                                H. R. 4561

 To amend the Internal Revenue Code of 1986 to provide that members of 
  the uniformed services and the Foreign Service shall be treated as 
      using a principal residence while on official extended duty.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 14, 1998

 Mr. Houghton 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 that members of 
  the uniformed services and the Foreign Service shall be treated as 
      using a principal residence while on official extended duty.

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

SECTION 1. MEMBERS OF THE UNIFORMED SERVICES AND THE FOREIGN SERVICE 
              TREATED AS USING PRINCIPAL RESIDENCE WHILE SERVING ON 
              OFFICIAL EXTENDED DUTY.

    (a) In General.--Subsection (d) of section 121 of the Internal 
Revenue Code (relating to special rules) is amended by adding at the 
end the following new paragraph:
            ``(9) Determination of use during periods of official 
        extended duty.--
                    ``(A) In general.--If--
                            ``(i) a taxpayer uses property for at least 
                        180 days as the taxpayer's principal residence, 
                        and
                            ``(ii) immediately thereafter, the taxpayer 
                        or the taxpayer's spouse serves on official 
                        extended duty,
                then the period during which the taxpayer remains on 
                official extended duty (and does not use another 
                principal residence owned by the taxpayer or the 
                taxpayer's spouse) shall be treated as use of the 
                property as the taxpayer's principal residence.
                    ``(B) Official extended duty.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `official extended duty' 
                        means any period of active duty as a member of 
                        the uniformed services or a member of the 
                        Foreign Service during which the member or 
                        member's spouse serves at a duty station which 
                        is at least 50 miles from the property referred 
                        to in subparagraph (A)(i) or is under military 
                        orders to reside in Government quarters.
                            ``(ii) Uniformed services.--For purposes of 
                        clause (i), the term `uniformed services' shall 
                        have the meaning given such term by section 
                        101(a)(5) of title 10, United States Code, as 
                        in effect on the date of the enactment of this 
                        paragraph.
                            ``(iii) Foreign service of the united 
                        states.--For purposes of clause (i), the term 
                        `member of the Foreign Service' has the meaning 
                        given the term `member of the Service' by 
                        paragraph (1), (2), (3), (4), or (5) of section 
                        103 of the Foreign Service Act of 1980, as in 
                        effect on the date of the enactment of this 
                        paragraph.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to sales or exchanges after May 6, 1997.
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