[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3764 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3764

To amend the Internal Revenue Code of 1986 to suspend the 5-year period 
relating to the exclusion of gain on the sale of a principal residence 
            during a period of service with the Peace Corps.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 4, 2007

Mr. McDermott (for himself and Mr. Van Hollen) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to suspend the 5-year period 
relating to the exclusion of gain on the sale of a principal residence 
            during a period of service with the Peace Corps.

    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 ``Peace Corps Volunteers Tax 
Improvement Act of 2007''.

SEC. 2. SUSPENSION OF 5-YEAR PERIOD DURING SERVICE WITH THE PEACE 
              CORPS.

    (a) In General.--Subsection (d) of section 121 of the Internal 
Revenue Code of 1986 (relating to special rules) is amended by adding 
at the end the following new paragraph:
            ``(12) Peace corps.--
                    ``(A) In general.--At the election of an individual 
                with respect to a property, the running of the 5-year 
                period described in subsections (a) and (c)(1)(B) and 
                paragraph (7) of this subsection with respect to such 
                property shall be suspended during any period that such 
                individual or such individual's spouse is serving 
                outside the United States--
                            ``(i) on qualified official extended duty 
                        (as defined in paragraph (9)(C)) as an employee 
                        of the Peace Corps, or
                            ``(ii) as an enrolled volunteer or 
                        volunteer leader under section 5 or 6 (as the 
                        case may be) of the Peace Corps Act (22 U.S.C. 
                        2504, 2505).
                    ``(B) Applicable rules.--For purposes of 
                subparagraph (A), rules similar to the rules of 
                subparagraphs (B) and (D) shall apply.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2007.

SEC. 3. GUIDANCE WITH RESPECT TO EXPENSES WHICH MAY BE DEDUCTED FROM 
              GROSS INCOME.

    The Secretary of the Treasury, in consultation with the Director of 
the Peace Corps, shall publish guidance with respect to expenses which 
may be deductible from gross income with respect to service as enrolled 
volunteers or volunteer leaders under the Peace Corps Act (22 U.S.C. 
2501 et seq.), and such guidance shall be periodically updated when the 
Director of the Peace Corps and the Secretary determine it necessary.
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