[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 4119 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 4119

To clarify the tax treatment of certain payments made to homeowners by 
   the Louisiana Recovery Authority and the Mississippi Development 
                               Authority.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 8, 2006

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

_______________________________________________________________________

                                 A BILL


 
To clarify the tax treatment of certain payments made to homeowners by 
   the Louisiana Recovery Authority and the Mississippi Development 
                               Authority.

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

SECTION 1. CLARIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS MADE TO 
              HOMEOWNERS BY THE LOUISIANA RECOVERY AUTHORITY AND THE 
              MISSISSIPPI DEVELOPMENT AUTHORITY.

    For purposes of the Internal Revenue Code of 1986, if a taxpayer--
            (1) receives any amount during the taxable year from the 
        Louisiana Recovery Authority or the Mississippi Development 
        Authority for the repair or reconstruction of such taxpayer's 
        primary residence due to damage sustained as the result of 
        hurricanes occurring during 2005, and
            (2) in any preceding taxable year claimed a casualty loss 
        deduction under section 165 of such Code with respect to such 
        damage,
such amount shall be disregarded in determining the allowable portion 
of such casualty loss deduction and so much of such amount as does not 
exceed such casualty loss deduction shall be disregarded in determining 
the taxpayer's basis in such residence.
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