PUBLIC LAW 103-66—AUG. 10, 1993 107 STAT. 567 PART IV—DISASTER RELIEF PROVISIONS SEC. 13431. MODIFICATION OF INVOLUNTARY CONVERSION RULES FOR CERTAIN DISASTER-RELATED CONVERSIONS. (a) IN GENERAL.—Section 1033 (relating to involuntary conver- 26 USC 1033. sions) is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: "(h) SPECIAL RULES FOR PRINCIPAL RESIDENCES DAMAGED BY PRESIDENTIALLY DECLARED DISASTERS. —
- (1) IN GENERAL.—If the taxpayer's principal residence or
any of its contents is compulsonly or involuntarily converted as a result of a Presidentially declared disaster—
- (A) TREATMENT OF INSURANCE PROCEEDS. —
"(i) EXCLUSION FOR UNSCHEDULED PERSONAL PROP- ERTY.—tfo gain shall be recognized by reason of the receipt of any insurance proceeds for personal property which was part of such contents and which was not scheduled property for purposes of such insurance. "(ii) OTHER PROCEEDS TREATED AS COMMON FUND.—In the case of any insurance proceeds (not described in clause (i)) for such residence or contents— "(1) such proceeds shall be treated as received for the conversion of a single item of property, and "(II) any property which is similar or related in service or use to the residence so converted (or contents thereof) shall be treated for purposes of subsection (a)(2) as property similar or related in service or use to such single item of property. "(B) EXTENSION OF REPLACEMENT PERIOD.—Subsection (a)(2)(B) shall be applied with respect to any property so converted by substituting *4 years' for '2 years'. "(2) PRESIDENTIALLY DECLARED DISASTER.— For purposes of this subsection, the term 'Presidentially declared disaster' means any disaster which, with respect to the area in which the residence is located, resulted in a subsequent determination by the President that such area warrants assistance by the Federal Government under the Disaster Relief and Emergency Assistance Act. "(3) PRINCIPAL RESIDENCE. —For purposes of this subsection, the term 'principal residence' has the same meaning as when used in section 1034, except that such term shall include a residence not treated as a principal residence solely because the taxpayer does not own the residence.". (b) EFFECTIVE DATE.— The amendment made by subsection (a) 26 USC 1033 shall apply to property compulsorily or involiintarily converted as a result of disasters for which the determination referred to in section 1033(h)(2) of the Internal Revenue Code of 1986 (as added by this section) is made on or after September 1, 1991, and to taxable years ending on or after such date. Part V—Miscellaneous Provisions SEC. 13441. INCREASE IN PRESIDENTIAL ELECTION CAMPAIGN FUND CHECK-OFF. (a) IN GENERAL.—Section 6096(a) (relating to designation by individuals) is amended— note.
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