Military Homeowners Equity Act

Military Homeowners Equity Act - Amends the Internal Revenue Code to state that members of the Uniformed or Foreign Services on qualified official extended duty shall be considered to be using already owned and used property as a principal residence for purposes of determining exclusion of gain upon such residence's sale.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1678 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1678

To amend the Internal Revenue Code of 1986 to provide that a member of 
the uniformed services or the Foreign Service 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.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 13, 2001

  Mr. McCain (for himself, Mr. Allard, Mr. Lieberman, Ms. Snowe, Mr. 
Levin, Mr. Murkowski, Mr. Cleland, Mr. Inhofe, Ms. Landrieu, Mr. Burns, 
  Mr. Durbin, Mr. Sessions, and Mr. DeWine) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide that a member of 
the uniformed services or the Foreign Service 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 ``Military Homeowners Equity Act''.

SEC. 2. MEMBER OF UNIFORMED SERVICE AND FOREIGN SERVICE 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 service or foreign 
        service.--
                    ``(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 or of the Foreign Service,
                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 or the Foreign Service is 
                        under a call or order compelling such duty at a 
                        duty station which is a 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.
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Uniformed service.--The term 
                        `uniformed service' has the meaning given such 
                        term by section 101(a)(5) of title 10, United 
                        States Code.
                            ``(ii) Foreign service of the united 
                        states.--The term `member of the Foreign 
                        Service' has the meaning given the term `member 
                        of the Service' by paragraph (1), (2), (3), 
                        (4), or (5) of section 103 of the Foreign 
                        Service Act of 1980.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to sales or exchanges on or after the date of the enactment of this 
Act.
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