[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6357 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 6357

To amend the Internal Revenue Code of 1986 to exclude from gross income 
  discharge of indebtedness incurred for purposes of paying long-term 
                             care expenses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 29, 2010

Ms. Zoe Lofgren of California 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 
  discharge of indebtedness incurred for purposes of paying long-term 
                             care expenses.

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

SECTION 1. CANCELLATION OF INDEBTEDNESS INCURRED FOR PAYING LONG-TERM 
              CARE EXPENSES.

    (a) In General.--Paragraph (2) of section 108(h) of the Internal 
Revenue Code of 1986 (defining qualified principal residence 
indebtedness) is amended--
            (1) by striking the period at the end and inserting ``, 
        and'',
            (2) by striking ``means acquisition indebtedness'' and 
        inserting the following: ``means--
                    ``(A) acquisition indebtedness'', and
            (3) by adding at the end the following new subparagraph:
                    ``(B) home equity indebtedness (as defined in 
                section 163(h)(3)(C))--
                            ``(i) incurred in connection with paying 
                        for qualified long-term care services (as 
                        defined in section 7702B(c)) of the taxpayer, 
                        and
                            ``(ii) to the extent the aggregate amount 
                        of such indebtedness does not exceed the amount 
                        paid by the taxpayer for such long-term care 
                        services.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to discharges of indebtedness on or after January 1, 2011.
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