[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1985 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1985

To amend the Internal Revenue Code of 1986 to lower the adjusted gross 
income threshold for deductible disaster casualty losses to 5 percent, 
  to make such deduction an above-the-line deduction, and to allow an 
 election to take such deduction for the preceding or succeeding year.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 19, 1999

Mr. Torricelli 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 lower the adjusted gross 
income threshold for deductible disaster casualty losses to 5 percent, 
  to make such deduction an above-the-line deduction, and to allow an 
 election to take such deduction for the preceding or succeeding year.

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

SECTION 1. MODIFICATIONS TO DISASTER CASUALTY LOSS DEDUCTION.

    (a) Lower Adjusted Gross Income Threshold.--Paragraph (2) of 
section 165(h) of the Internal Revenue Code of 1986 (relating to 
treatment of casualty gains and losses) is amended--
            (1) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) In general.--If the personal casualty losses 
                for any taxable year exceed the personal casualty gains 
                for such taxable year, such losses shall be allowed for 
                the taxable year only to the extent of the sum of--
                            ``(i) the amount of the personal casualty 
                        gains for the taxable year, plus
                            ``(ii) so much of such excess attributable 
                        to losses described in subsection (i) as 
                        exceeds 5 percent of the adjusted gross income 
                        of the individual (determined without regard to 
                        any deduction allowable under subsection 
                        (c)(3))'', plus
                            ``(iii) so much of such excess attributable 
                        to losses not described in subsection (i) as 
                        exceeds 10 percent of the adjusted gross income 
                        of the individual.
                For purposes of this subparagraph, personal casualty 
                losses attributable to losses not described in 
                subsection (i) shall be considered before such losses 
                attributable to losses described in subsection (i).'', 
                and
            (2) by striking ``10 percent'' in the heading and inserting 
        ``percentage''.
    (b) Above-The-Line Deduction.--Section 62(a) of the Internal 
Revenue Code of 1986 (defining adjusted gross income) is amended by 
inserting after paragraph (17) the following:
            ``(18) Certain disaster losses.--The deduction allowed by 
        section 165(c)(3) to the extent attributable to losses 
        described in section 165(i).''
    (c) Election To Take Disaster Loss Deduction for Preceding or 
Succeeding 2 Years.--Paragraph (1) of section 165(i) of the Internal 
Revenue Code of 1986 (relating to disaster losses) is amended--
            (1) by inserting ``or succeeding'' after ``preceding'', and
            (2) by inserting ``or succeeding'' after ``preceding'' in 
        the heading.
    (d) Effective Date.--The amendments made by this section shall 
apply to losses sustained in taxable years beginning after December 31, 
1998.
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