[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1755 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1755

 To amend the Internal Revenue Code of 1986 to provide a special rule 
 for members of the uniformed services and Foreign Service, and other 
  employees, in determining the exclusion of gain from the sale of a 
                          principal residence.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 3, 2001

  Mr. Graham (for himself and Mrs. Lincoln) 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 a special rule 
 for members of the uniformed services and Foreign Service, and other 
  employees, in determining the exclusion of gain from the sale of a 
                          principal residence.

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

SECTION 1. SPECIAL RULE FOR MEMBERS OF UNIFORMED SERVICES AND FOREIGN 
              SERVICE, AND OTHER EMPLOYEES, IN DETERMINING EXCLUSION OF 
              GAIN FROM SALE OF PRINCIPAL RESIDENCE.

    (a) In General.--Subsection (d) of section 121 of the Internal 
Revenue Code of 1986 (relating to exclusion of gain from sale of 
principal residence) is amended by adding at the end the following new 
paragraphs:
            ``(9) Members of uniformed services and foreign service.--
                    ``(A) In general.--The running of the 5-year period 
                described in subsection (a) shall be suspended with 
                respect to an individual during any time that such 
                individual or such individual's spouse is serving on 
                qualified official extended duty as a member of the 
                uniformed services or of the Foreign Service.
                    ``(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 as a member of the uniformed 
                        services or a member of the Foreign Service 
                        during which the member serves at a duty 
                        station which is at least 50 miles from such 
                        property or is under Government orders to 
                        reside in Government quarters.
                            ``(ii) Uniformed services.--The term 
                        `uniformed services' has 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.--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.
                            ``(iv) 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.
            ``(10) Other employees.--
                    ``(A) In general.--The running of the 5-year period 
                described in subsection (a) shall be suspended with 
                respect to an individual during any time that such 
                individual or such individual's spouse is serving as an 
                employee for a period in excess of 90 days in an 
                assignment by such employee's employer outside the 
                United States.
                    ``(B) Limitations and special rules.--
                            ``(i) Maximum period of suspension.--The 
                        suspension under subparagraph (A) with respect 
                        to a principal residence shall not exceed (in 
                        the aggregate) 5 years.
                            ``(ii) Members of uniformed services and 
                        foreign service.--Subparagraph (A) shall not 
                        apply to an individual to whom paragraph (9) 
                        applies.
                            ``(iii) Self-employed individual not 
                        considered an employee.--For purposes of this 
                        paragraph, the term `employee' does not include 
                        an individual who is an employee within the 
                        meaning of section 401(c)(1) (relating to self-
                        employed individuals).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to sales and exchanges after the date of the enactment of this Act.
                                 <all>