Home > 106th Congressional Bills > S. 2956 (is) To establish the Colorado Canyons National Conservation Area and the Black Ridge Canyons Wilderness, and for other purposes. [Introduced in Senate] ...

S. 2956 (is) To establish the Colorado Canyons National Conservation Area and the Black Ridge Canyons Wilderness, and for other purposes. [Introduced in Senate] ...


Google
 
Web GovRecords.org








108th CONGRESS
  2d Session
                                S. 2955

To amend the Internal Revenue Code of 1986 to exclude from gross income 
  of individual taxpayers discharges of indebtedness attributable to 
           certain forgiven residential mortgage obligations.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 8, 2004

 Mr. Smith (for himself and Mr. Conrad) 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 exclude from gross income 
  of individual taxpayers discharges of indebtedness attributable to 
           certain forgiven residential mortgage obligations.

    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 ``Mortgage Cancellation Relief Act of 
2004''.

SEC. 2. EXCLUSION FROM GROSS INCOME FOR CERTAIN FORGIVEN MORTGAGE 
              OBLIGATIONS.

    (a) In General.--Paragraph (1) of section 108(a) of the Internal 
Revenue Code of 1986 (relating to exclusion from gross income) is 
amended by striking ``or'' at the end of subparagraph (C), by striking 
the period at the end of subparagraph (D) and inserting ``, or'', and 
by inserting after subparagraph (D) the following new subparagraph:
                    ``(E) in the case of an individual, the 
                indebtedness discharged is qualified residential 
                indebtedness.''.
    (b) Qualified Residential Indebtedness Shortfall.--Section 108 of 
such Code (relating to discharge of indebtedness) is amended by adding 
at the end the following new subsection:
    ``(h) Special Rules for Qualified Residential Indebtedness.--
            ``(1) Limitations.--
                    ``(A) In general.--The amount excluded under 
                subparagraph (E) of subsection (a)(1) with respect to 
                any qualified residential indebtedness shall not exceed 
                the excess (if any) of--
                            ``(i) the outstanding principal amount of 
                        such indebtedness (immediately before the 
                        discharge), over
                            ``(ii) the sum of--
                                    ``(I) the amount realized from the 
                                sale of the real property securing such 
                                indebtedness reduced by the cost of 
                                such sale, and
                                    ``(II) the outstanding principal 
                                amount of any other indebtedness 
                                secured by such property.
                    ``(B) Overall limitation.--The amount excluded 
                under subparagraph (E) of subsection (a)(1) with 
                respect to any qualified residential indebtedness shall 
                not exceed $50,000.
            ``(2) Qualified residential indebtedness.--
                    ``(A) In general.--The term `qualified residential 
                indebtedness' means indebtedness which--
                            ``(i) was incurred or assumed by the 
                        taxpayer in connection with real property used 
                        by the taxpayer as a principal residence 
                        (within the meaning of section 121) and is 
                        secured by such real property,
                            ``(ii) is incurred or assumed to acquire, 
                        construct, reconstruct, or substantially 
                        improve such real property, and
                            ``(iii) with respect to which such taxpayer 
                        makes an election to have this paragraph apply.
                    ``(B) Refinanced indebtedness.--Such term shall 
                include indebtedness resulting from the refinancing of 
                indebtedness under subparagraph (A)(ii), but only to 
                the extent the refinanced indebtedness does not exceed 
                the amount of the indebtedness being refinanced.
                    ``(C) Exceptions.--Such term shall not include 
                qualified farm indebtedness or qualified real property 
                business indebtedness.
            ``(3) Regulations.--The Secretary may by regulation provide 
        for the disallowance of an exclusion under this section by 
        reason of subparagraph (E) of subsection (a)(1) in cases where 
        the failure to repay the indebtedness is due to the bad faith 
        of the taxpayer.''.
    (c) Conforming Amendments.--
            (1) Paragraph (2) of section 108(a) of such Code is 
        amended--
                    (A) in subparagraph (A) by striking ``and (D)'' and 
                inserting ``(D), and (E)'', and
                    (B) by amending subparagraph (B) to read as 
                follows:
                    ``(B) Insolvency exclusion takes precedence over 
                qualified farm exclusion, qualified real property 
                business exclusion, and qualified residential shortfall 
                exclusion.--Subparagraphs (C), (D), and (E) of 
                paragraph (1) shall not apply to a discharge to the 
                extent the taxpayer is insolvent.''.
            (2) Paragraph (1) of section 108(b) of such Code is amended 
        by striking ``or (C)'' and inserting ``(C), or (E)''.
            (3) Subsection (b) of section 121 of such Code is amended 
        by adding at the end the following new paragraph:
            ``(4) Special rule relating to discharge of indebtedness.--
        The amount of gain which (but for this paragraph) would be 
        excluded from gross income under subsection (a) with respect to 
        a principal residence shall be reduced by any amount excluded 
        from the gross income of the taxpayer under section 
        108(a)(1)(E) with respect to such residence.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to discharges after the date of the enactment of this Act.
                                 <all>

Pages: 1

Other Popular 106th Congressional Bills Documents:

1 S. 335 (eah) [Engrossed Amendment House] ...
2 H.R. 1906 (eh) Making appropriations for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies for the fiscal year ending September 30, 2000, and for other purposes. [Engrossed in House] ...
3 H.R. 5530 (ih) To extend for 1 additional year the period for which chapter 12 of title 11 of the United States Code is reenacted; to provide for additional temporary bankruptcy judges; and for other purposes. [Introduced in House] ...
4 H.R. 5062 (ih) To establish the eligibility of certain aliens lawfully admitted for permanent residence for cancellation of removal under section 240A of the Immigration and Nationality Act. [Introduced in House] ...
5 H.Res. 257 (eh) [Engrossed in House] ...
6 H.R. 3843 (rh) To reauthorize programs to assist small business concerns, and for other purposes. [Reported in House] ...
7 S. 2977 (es) To assist in the establishment of an interpretive center and museum in [Engrossed in Senate] ...
8 H.R. 1920 (ih) To establish a program to provide grants to expand the availability of public health dentistry programs in medically underserved areas, health professional shortage areas, and other Federally-defined areas that lack primary dental services....
9 H.R. 4656 (ih) To authorize the Forest Service to convey certain lands in the Lake Tahoe Basin to the Washoe County School District for use as an elementary school site. [Introduced in House] ...
10 H.R. 72 (ih) To amend title 10, United States Code, to revise the rules relating to the court-ordered apportionment of the retired pay of members of the Armed Forces to former spouses, and for other purposes. [Introduced in House] ...
11 S. 2882 (rfh) To authorize the Bureau of Reclamation to conduct certain feasibility studies to augment water supplies for the Klamath Project, Oregon and California, and for other purposes. [Referred in House] ...
12 H.Res. 662 (rh) Providing for consideration of certain joint resolutions making further continuing appropriations for the fiscal year 2001, and for other purposes. [Reported in House] ...
13 S. 3211 (is) To authorize the Secretary of Education to provide grants to develop technologies to eliminate functional barriers to full independence for individuals with disabilities, and for other purposes. [Introduced in Senate] ...
14 S. 1293 (is) To establish a Congressional Recognition for Excellence in Arts Education Board. [Introduced in Senate] ...
15 H.R. 5403 (ih) To restore Federal recognition to the Miami Nation of Indiana. [Introduced in House] ...
16 H.R. 4748 (ih) To amend title I of the Employee Retirement Income Security Act of 1974 [Introduced in House] ...
17 S.Res. 57 (is) Expressing the sense of the Senate regarding the human rights situation in Cuba. [Introduced in Senate] ...
18 S. 3072 (is) To assist in the enhancement of the development and expansion of international economic assistance programs that utilize cooperatives and credit unions, and for other purposes. [Introduced in Senate] ...
19 H.R. 3817 (rh) To redesignate the Big South Trail in the Comanche Peak Wilderness Area of Roosevelt National Forest in Colorado as the ``Jaryd Atadero Legacy Trail''. [Reported in House] ...
20 H.R. 459 (rs) To extend the deadline under the Federal Power Act for FERC Project No. 9401, the Mt. Hope Waterpower Project. [Reported in Senate] ...
21 H.R. 2614 (eas) [Engrossed Amendment Senate] ...
22 S. 1290 (rs) To amend title 36 of the United States Code to establish the American Indian Education Foundation, and for other purposes. [Reported in Senate] ...
23 H.Res. 409 (ih) Honoring the contributions of Catholic schools. [Introduced in House] ...
24 S. 2924 (es) To strengthen the enforcement of Federal statutes relating to false identification, and for other purposes. [Engrossed in Senate] ...
25 H.R. 3194 (eh) Making appropriations for the government of the District of Columbia and other activities chargeable in whole or in part against revenues of said District for the fiscal year ending September 30, 2000, and for other purposes. [Engrossed in...
26 S. 2534 (is) To suspend temporarily the duty on Pigment Yellow 168. [Introduced in Senate] ...
27 S.Res. 267 (pcs) Directing the return of certain treaties to the President. [Placed on Calendar Senate] ...
28 H.R. 1553 (ih) To authorize appropriations for fiscal year 2000 and fiscal year 2001 [Introduced in House] ...
29 S. 2098 (is) To facilitate the transition to more competitive and efficient electric power markets, and to ensure electric reliability. [Introduced in Senate] ...
30 S. 125 (is) To reduce the number of executive branch political appointees. [Introduced in Senate] ...


Other Documents:

106th Congressional Bills Records and Documents

GovRecords.org presents information on various agencies of the United States Government. Even though all information is believed to be credible and accurate, no guarantees are made on the complete accuracy of our government records archive. Care should be taken to verify the information presented by responsible parties. Please see our reference page for congressional, presidential, and judicial branch contact information. GovRecords.org values visitor privacy. Please see the privacy page for more information.
House Rules:

104th House Rules
105th House Rules
106th House Rules

Congressional Bills:

104th Congressional Bills
105th Congressional Bills
106th Congressional Bills
107th Congressional Bills
108th Congressional Bills

Supreme Court Decisions

Supreme Court Decisions

Additional

1995 Privacy Act Documents
1997 Privacy Act Documents
1994 Unified Agenda
2004 Unified Agenda

Congressional Documents:

104th Congressional Documents
105th Congressional Documents
106th Congressional Documents
107th Congressional Documents
108th Congressional Documents

Congressional Directory:

105th Congressional Directory
106th Congressional Directory
107th Congressional Directory
108th Congressional Directory

Public Laws:

104th Congressional Public Laws
105th Congressional Public Laws
106th Congressional Public Laws
107th Congressional Public Laws
108th Congressional Public Laws

Presidential Records

1994 Presidential Documents
1995 Presidential Documents
1996 Presidential Documents
1997 Presidential Documents
1998 Presidential Documents
1999 Presidential Documents
2000 Presidential Documents
2001 Presidential Documents
2002 Presidential Documents
2003 Presidential Documents
2004 Presidential Documents

Home Executive Judicial Legislative Additional Reference About Privacy