[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2445 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2445

To amend the Internal Revenue Code of 1986 to exclude from gross income 
       discharges of personal indebtedness outside of bankruptcy.


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                    IN THE HOUSE OF REPRESENTATIVES

                              May 14, 2009

   Mr. Paul 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 exclude from gross income 
       discharges of personal indebtedness outside of bankruptcy.

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

SECTION 1. EXCLUSION FOR DISCHARGES OF PERSONAL INDEBTEDNESS OUTSIDE OF 
              BANKRUPTCY.

    (a) In General.--Paragraph (1) of section 108(a) of the Internal 
Revenue Code of 1986 is amended by striking ``or'' at the end of 
subparagraph (D), by striking the period at the end of subparagraph (E) 
and inserting ``, or'', and by inserting after subparagraph (E) the 
following:
                    ``(F) the indebtedness discharged is qualified 
                personal indebtedness.''.
    (b) Qualified Personal Indebtedness.--Section 108 of such Code is 
amended by adding at the end the following:
    ``(j) Qualified Personal Indebtedness.--For purposes of this 
section, the term `qualified personal indebtedness' means any 
indebtedness of an individual other than--
            ``(1) indebtedness properly allocable to a trade or 
        business,
            ``(2) indebtedness which is a student loan (as defined in 
        subsection (f)),
            ``(3) qualified principal residence indebtedness, and
            ``(4) indebtedness to which subparagraph (A) or (B) of 
        subsection (a)(1) applies.''.
    (c) Conforming Amendments.--
            (1) Section 108(a)(2)(A) of such Code is amended by 
        striking ``and (E)'' and inserting ``(E), and (F)''.
            (2) Section 108(a)(2)(B) of such Code is amended by 
        striking ``(C) and (D)'' and inserting ``(C), (D), and (F)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to discharges of indebtedness after December 31, 2008.
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