[Congressional Record (Bound Edition), Volume 148 (2002), Part 9]
[Extensions of Remarks]
[Page 12722]
[From the U.S. Government Publishing Office, www.gpo.gov]




               ARMED FORCES TAX FAIRNESS ACT (H.R. 5063)

                                 ______
                                 

                               speech of

                           HON. EARL POMEROY

                            of north dakota

                    in the house of representatives

                         Tuesday, July 9, 2002

  Mr. POMEROY. Mr. Speaker, I rise in strong support of the Armed 
Forces Tax Fairness Act. This bill makes it easier for military 
families to sell their homes without tax penalty and ensures that death 
benefits received by families of deceased military personnel are exempt 
from taxation.
  At this time, we should do everything in our power to better the 
quality of life for our service men and women who are fighting on our 
behalf. These tax cuts benefit our military families who have committed 
so much to protecting our freedoms.
  This bill makes it easier for military families, like those at Grant 
Forks and Minot Air Force bases, to sell their homes without incurring 
capital gains taxes. Currently, a taxpayer can exclude from taxable 
income up to $250,000 of gain realized from the sale of a home. To 
qualify for the exemption, the taxpayer must have owned and lived in 
the home for at least two of the five years prior to the sale. For 
military personnel who are often deployed for long periods of time, 
this time requirement poses a real hardship.
  This bill suspends the five-year requirement for the capital gains 
exemption for the time that the service member is serving on extended 
military duty away from their home. This provision could save service 
members and their families a capital gains tax hit as much as 20% of 
the value of their homes.
  The legislation also exempts from taxes the full $6,000 death benefit 
received by families of deceased military personnel and allows for tax-
free treatment of future increases in the death gratuity. This change 
to the tax law furthers our commitment to taking care of military 
families who lose a service member in the line of fire.
  I strongly support this bill and encourage my colleagues to adopt the 
legislation. We should act together to honor and show our support for 
the men and women in uniform.

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