Sec. 1406. Repeal of deduction for personal casualty losses

453 words·~2 min read·/bill/113/hr/1/ih/section-1406

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Subsection

(c)of section 165 is amended by inserting and at the end of paragraph (1), by striking ; and at the end of paragraph

(2)and inserting a period, and by striking paragraph (3). Section 165 is amended by striking subsections

(h)and (k). Subsection

(i)of section 165 is amended— in paragraph (1)— by striking (as defined by clause

(ii)of subsection (h)(3)(C)) , and by striking (as defined by clause

(i)of such subsection) , by striking (as defined by subsection (h)(3)(C)(i) in paragraph (4), and by adding at the end the following new paragraph: For purposes of this subsection— The term federally declared disaster means any disaster subsequently determined by the President of the United States to warrant assistance by the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. The term disaster area means the area so determined to warrant such assistance. . Section 165(l)(1) is amended by striking a loss described in subsection (c)(3) and inserting an ordinary loss described in subsection (c)(2) . Section 165(l) is amended— by striking paragraph (5), by redesignating paragraphs (2), (3), and

(4)as paragraphs (3), (4), and (5), respectively, and by inserting after paragraph

(1)the following new paragraph: No election may be made under paragraph

(1)with respect to any loss on a deposit in a qualified financial institution if part or all of such deposit is insured under Federal law. With respect to each financial institution, the aggregate amount of losses attributable to deposits in such financial institution to which an election under paragraph

(1)may be made by the taxpayer for any taxable year shall not exceed $20,000 ($10,000 in the case of a separate return by a married individual). The limitation of the preceding sentence shall be reduced by the amount of any insurance proceeds under any State law which can reasonably be expected to be received with respect to losses on deposits in such institution. . Section 172(b)(1)(F)(ii), prior to redesignation under title III, is amended— by striking subclause

(I)and by redesignating subclauses

(II)and

(III)as subclauses

(I)and (II), respectively, and by striking subsection (h)(3)(C)(i) and inserting section 165(i)(5) . Section 172(d)(4)(C) is amended by striking paragraph

(2)or

(3)of section 165(c) and inserting section 165(c)(2) . Section 274(f) is amended by striking in the heading thereof. casualty losses, Section 280A(b) is amended by striking in the heading thereof. casualty losses, Section 873(b), as amended by the preceding provisions of this Act, is amended by striking paragraph

(1)and by redesignating paragraphs

(2)and

(3)as paragraphs

(1)and (2), respectively. The amendments made by this section shall apply to taxable years beginning after December 31, 2014.