I 111th CONGRESS 2d Session H. R. 6357 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.

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.