HR 356 IH

To amend the Internal Revenue Code of 1986 to provide that a member of the uniformed services shall be treated as using a principal residence while away from home on qualified official extended duty in determining the exclusion of gain from the sale of such residence.

January 31, 2001

Mr. JONES of North Carolina (for himself, Mr. DUNCAN, and Mr. HANSEN) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to provide that a member of the uniformed services shall be treated as using a principal residence while away from home on qualified official extended duty in determining the exclusion of gain from the sale of such residence.

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 `Uniformed Services Tax Equity Act'.

SEC. 2. UNIFORMED SERVICE MEMBER TREATED AS USING PRINCIPAL RESIDENCE WHILE AWAY FROM HOME ON QUALIFIED OFFICIAL EXTENDED DUTY IN DETERMINING EXCLUSION OF GAIN ON SALE OF SUCH RESIDENCE.

(a) IN GENERAL- Section 121(d) of the Internal Revenue Code of 1986 (relating to special rules) is amended by adding at the end the following:

`(9) DETERMINATION OF USE DURING PERIODS OF QUALIFIED OFFICIAL EXTENDED DUTY WITH UNIFORMED SERVICES-

`(A) IN GENERAL- A taxpayer shall be treated as using property as a principal residence during any period--

`(i) the taxpayer owns such property, and

`(ii) the taxpayer (or the taxpayer's spouse) is serving on qualified official extended duty as a member of a uniformed service (within the meaning of section 101(3) of title 37, United States Code),

but only if the taxpayer owned and used the property as a principal residence for any period before the period of qualified official extended duty.

`(B) QUALIFIED OFFICIAL EXTENDED DUTY- For purposes of this paragraph--

`(i) IN GENERAL- The term `qualified official extended duty' means any period of extended duty during which the member of a uniformed service is under a call or order compelling such duty at a duty station which is at least 50 miles from the property described in subparagraph (A) or compelling residence in Government furnished quarters while on such duty.

`(ii) EXTENDED DUTY- The term `extended duty' means any period of active duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.'

(b) EFFECTIVE DATE- The amendment made by this section shall apply to sales or exchanges after May 6, 1997.

END