[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5637 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5637

To amend the Internal Revenue Code of 1986 to provide an exclusion from 
          gross income for discharge of consumer indebtedness.


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                    IN THE HOUSE OF REPRESENTATIVES

                           September 18, 2014

 Mr. Peters of California (for himself and Mr. Vargas) 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 provide an exclusion from 
          gross income for discharge of consumer indebtedness.

    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 ``Consumer Debt Forgiveness Tax Relief 
Act of 2014''.

SEC. 2. EXCLUSION FROM GROSS INCOME FOR DISCHARGE OF CONSUMER 
              INDEBTEDNESS.

    (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 adding at the end the following:
                    ``(F) the indebtedness discharged is qualified 
                consumer indebtedness.''.
    (b) Special Rules Relating to Qualified Consumer Indebtedness.--
Section 108 of the Internal Revenue Code of 1986 is amended by adding 
at the end the following:
    ``(j) Special Rules Relating to Qualified Consumer Indebtedness.--
            ``(1) Qualified consumer indebtedness defined.--For 
        purposes of this section, the term `qualified consumer 
        indebtedness' means any indebtedness of a natural person 
        arising out of a transaction in which the money, property, or 
        services which are the subject of the transaction are primarily 
        for personal, family, or household purposes.
            ``(2) Overall limitation.--The aggregate amount of 
        discharged indebtedness treated as qualified consumer 
        indebtedness for the taxable year shall not exceed the excess 
        (if any) of--
                    ``(A) $2,500, over
                    ``(B) the aggregate amounts treated as qualified 
                consumer indebtedness with respect to such taxpayer for 
                all prior taxable years.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to indebtedness discharged after the date of the enactment of 
this Act.
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