[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 309 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 309

To amend the Internal Revenue Code of 1986 to provide that a member of 
the uniformed services shall be treated as using a principal residence 
while away from home on qualified official extended duty in determining 
         the exclusion of gain from the sale of such residence.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 26, 1999

  Mr. McCain (for himself and Mr. Thurmond) 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 provide that a member of 
the uniformed services shall be treated as using a principal residence 
while away from home on qualified official extended duty in determining 
         the exclusion of gain from the sale of such residence.

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

SECTION 1. UNIFORMED SERVICE MEMBER TREATED AS USING PRINCIPAL 
              RESIDENCE WHILE AWAY FROM HOME ON QUALIFIED OFFICIAL 
              EXTENDED DUTY IN DETERMINING EXCLUSION OF GAIN ON SALE OF 
              SUCH RESIDENCE.

    (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:
            ``(9) Determination of use during periods of qualified 
        official extended duty with uniformed services.--
                    ``(A) In general.--A taxpayer shall be treated as 
                using property as a principal residence during any 
                period--
                            ``(i) the taxpayer owns such property, and
                            ``(ii) the taxpayer (or the taxpayer's 
                        spouse) is serving on qualified official 
                        extended duty as a member of a uniformed 
                        service (within the meaning of section 101(3) 
                        of title 37, United States Code),
                but only if the taxpayer owned and used the property as 
                a principal residence for any period before the period 
                of qualified official extended duty.
                    ``(B) Qualified official extended duty.--For 
                purposes of this paragraph--
                            ``(i) In general.--The term `qualified 
                        official extended duty' means any period of 
                        extended duty during which the member of a 
                        uniformed service is under a call or order 
                        compelling such duty at a duty station which is 
                        a least 50 miles from the property described in 
                        subparagraph (A) or compelling residence in 
                        Government furnished quarters while on such 
                        duty.
                            ``(ii) Extended duty.--The term `extended 
                        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.
                                 <all>