[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 945 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 945

To amend the Internal Revenue Code of 1986 to repeal the recognition of 
                  capital gain rule for home offices.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 24, 2001

   Mr. Bond 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 repeal the recognition of 
                  capital gain rule for home offices.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home-Office Deduction Simplification 
Act of 2001''.

SEC. 2. REPEAL OF RECOGNITION OF GAIN RULE FOR HOME OFFICE.

    (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 striking paragraph (6) and 
redesignating paragraphs (7) and (8) as paragraphs (6) and (7), 
respectively.
    (b) Exception to Treatment as Gain From Disposition of Principal 
Residence.--Subsection (d) of section 1250 of the Internal Revenue Code 
of 1986 (relating to gain from dispositions of certain depreciable 
realty) is amended by adding at the end the following new paragraph:
            ``(9) Home office.--Subsection (a) shall not apply to 
        property described in section 280A(c)(1) which is a portion of 
        the principal residence (within the meaning of section 121) of 
        the taxpayer.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to sales and exchanges occurring after December 31, 2000.
                                 <all>