S. 29

A bill to clarify the tax treatment of certain payments made to homeowners by the Louisiana Recovery Authority and the Mississippi Development Authority.

Latest
Raw Text PDF XML

II

110th CONGRESS

1st Session

S. 29

IN THE SENATE OF THE UNITED STATES

January 4, 2007

Ms. Landrieu introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To clarify the tax treatment of certain payments made to homeowners by the Louisiana Recovery Authority and the Mississippi Development Authority.

1.

Clarification of tax treatment of certain payments made to homeowners by the Louisiana Recovery Authority and the Mississippi Development Authority

For purposes of the Internal Revenue Code of 1986, if a taxpayer—

(1)

receives any amount during the taxable year from the Louisiana Recovery Authority or the Mississippi Development Authority for the repair or reconstruction of such taxpayer's primary residence due to damage sustained as the result of hurricanes occurring during 2005, and

(2)

in any preceding taxable year claimed a casualty loss deduction under section 165 of such Code with respect to such damage,

such amount shall be disregarded in determining the allowable portion of such casualty loss deduction and so much of such amount as does not exceed such casualty loss deduction shall be disregarded in determining the taxpayer's basis in such residence.