S. 2236 — Introduced in Senate

II 118th CONGRESS 1st Session S. 2236 IN THE SENATE OF THE UNITED STATES July 11, 2023Mr. Blumenthal (for himself, Mr. Cassidy, Ms. Warren, Mr. Markey, and Mr. Murphy) 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 repeal the temporary limitation on personal casualty losses. 1. Short title This Act may be cited as the Casualty Loss Deduction Restoration Act. 2. Repeal of temporary limitation on personal casualty losses; temporary dollar limitation added (a) In general Section 165(h) of the Internal Revenue Code of 1986 is amended by striking paragraph (5) and inserting the following new paragraph: (5) Limitation for taxable years 2018 through 2025 (A) In general In the case of an individual, the aggregate amount of any personal casualty losses allowed under subsection (a) with respect to a taxable year beginning after December 31, 2017, and before January 1, 2026, shall not exceed $50,000 for each such taxable year. (B) Exception Subparagraph (A) shall not apply to any personal casualty loss attributable to a Federally declared disaster (as defined in subsection (i)(5)) allowed under subsection (a). . (b) Extension of period of limitation (1) In general In the case of a claim for credit or refund which is properly allocable to a loss which is described in paragraph (2)— (A) the period of limitation prescribed in section 6511(a) of the Internal Revenue Code of 1986 for the filing of such claim shall be treated as not expiring earlier than the date that is 1 year after the date of the enactment of this Act, and (B) any limitation described in section 6511(b)(2) shall not apply. (2) Loss described A loss is described in this paragraph if such loss is— (A) described in section 165(c)(3) of the Internal Revenue Code of 1986, and (B) deductible under section 165(a) for a taxable year beginning after December 31, 2017. (c) Effective date The amendment made by subsection (a) shall apply to losses incurred in taxable years beginning after December 31, 2017. (d) Regulations The Secretary of the Treasury (or the Secretary’s delegate) shall issue such regulations or other guidance as are necessary to implement the amendment made by this section, including regulations or guidance consistent with Revenue Procedure 2017–60.