Page:United States Statutes at Large Volume 121.djvu/1825

 121 STAT. 1804

PUBLIC LAW 110–142—DEC. 20, 2007 of the loan (as determined immediately before such discharge) which is not qualified principal residence indebtedness. ‘‘(5) PRINCIPAL RESIDENCE.—For purposes of this subsection, the term ‘principal residence’ has the same meaning as when used in section 121.’’. (c) COORDINATION.— (1) Subparagraph (A) of section 108(a)(2) of such Code is amended by striking ‘‘and (D)’’ and inserting ‘‘(D), and (E)’’. (2) Paragraph (2) of section 108(a) of such Code is amended by adding at the end the following new subparagraph: ‘‘(C) PRINCIPAL RESIDENCE EXCLUSION TAKES PRECE-

26 USC 108.

DENCE OVER INSOLVENCY EXCLUSION UNLESS OTHERWISE.—Paragraph (1)(B) shall not apply

26 USC 108 note.

ELECTED

to a discharge to which paragraph (1)(E) applies unless the taxpayer elects to apply paragraph (1)(B) in lieu of paragraph (1)(E).’’. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to discharges of indebtedness on or after January 1, 2007. SEC. 3. EXTENSION OF TREATMENT OF MORTGAGE INSURANCE PREMIUMS AS INTEREST.

26 USC 163 note.

(a) IN GENERAL.—Subclause (I) of section 163(h)(3)(E)(iv) of the Internal Revenue Code of 1986 (relating to termination) is amended by striking ‘‘December 31, 2007’’ and inserting ‘‘December 31, 2010’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to amounts paid or accrued after December 31, 2007. SEC. 4. ALTERNATIVE TESTS FOR QUALIFYING AS COOPERATIVE HOUSING CORPORATION.

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26 USC 216 note.

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07:12 Jan 26, 2009

(a) IN GENERAL.—Subparagraph (D) of section 216(b)(1) of the Internal Revenue Code of 1986 (defining cooperative housing corporation) is amended to read as follows: ‘‘(D) meeting 1 or more of the following requirements for the taxable year in which the taxes and interest described in subsection (a) are paid or incurred: ‘‘(i) 80 percent or more of the corporation’s gross income for such taxable year is derived from tenantstockholders. ‘‘(ii) At all times during such taxable year, 80 percent or more of the total square footage of the corporation’s property is used or available for use by the tenant-stockholders for residential purposes or purposes ancillary to such residential use. ‘‘(iii) 90 percent or more of the expenditures of the corporation paid or incurred during such taxable year are paid or incurred for the acquisition, construction, management, maintenance, or care of the corporation’s property for the benefit of the tenant-stockholders.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years ending after the date of the enactment of this Act.

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