[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1799 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 1799

 To amend section 121 of the Internal Revenue Code of 1986 to provide 
that a member of the Armed Forces of the United States shall be treated 
as using a principal residence while away from home on extended active 
                                 duty.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 19, 1998

  Mr. McCain introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend section 121 of the Internal Revenue Code of 1986 to provide 
that a member of the Armed Forces of the United States shall be treated 
as using 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. 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.--A taxpayer shall be treated as 
                using property as a principal residence during any 
                period the taxpayer (or the taxpayer's spouse) is 
                serving on extended active duty with the Armed Forces 
                of the United States, but only if the taxpayer used the 
                property as a principal residence for any period before 
                the period of extended active duty.
                    ``(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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