Page:United States Statutes at Large Volume 92 Part 3.djvu/472

 92 STAT. 3104

PUBLIC LAW 95-615—NOV. 8, 1978 " (h) QUALIFIED H A R D S H I P A R E A DEDUCTION. —

" (1) IN GENERAL.—For purposes of this section, the term ' q u a l i fied h a r d s h i p area deduction' means a n amount computed on a daily basis a t a n annual rate of $5,000 for days during which the individual's tax home is in a h a r d s h i p area. " (2^ H A R D S H I P AREA DEFINED,—For purposes of t h i s section, the

term ' h a r d s h i p area' means any foreign place designated by the Secretary of State as a h a r d s h i p post where extraordinarily difficult living conditions, notably unhealthful conditions, or excessive physical h a r d s h i p s exist and for which a post differential of 15 percent or more— " (A) is provided under section 5925 of title 5, United States Code, or " (B) would be so provided if officers and employees of the Government of the United States were present at that place. " (i) SPECIAL RULES W H E R E INDIVIDUAL M A I N T A I N S SEPARATE HOUSEHOLD FOR SPOUSE AND DEPENDENTS BECAUSE OF ADVERSE L IV I N G CONDITIONS AT T A X H O M E. —

" (1) IN GENERAL.—For any period during which a n individual maintains a qualified second household— " (A) QUALIFIED COST-OF-LIVING DIFFERENTIAL.— " (i) ALLOWANCE DETERMINED BY REFERENCE TO LOCA-

TION OF QUALIFIED SECOND HOUSEHOLD.—Paragraph (1) of subsection (d) shall be applied by substituting ' the qualified second household' for ' the individual's tax home'. 26 USC 119.

"(ii)

DISREGARD OF SECTION H 9 RULE. — Subparagraph

(E) of subsection (d)(2) shall not a p p l y w i t h respect to the spouse and dependents. " (B) QUALIFIED HOUSING EXPENSES.— " (i) E X P E N S E S W I T H RESPECT TO QUALIFIED SECOND

HOUSEHOLD TAKEN INTO ACCOUNT.—For purposes of subsection (e), the expenses for housing of a n individual's spouse and dependents a t the qualified second household shall be treated as housing expenses if they would meet the requirements of subsection (e)(2) if the individual resided a t such household.

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" ( i i) SEPARATE APPLICATION OF SUBSECTION (e). — S u b -

section (e) shall be applied separately with respect to the housing expenses for the qualified second household; except that, in determining the base housing amount, the housing expenses (if any) of the individual for housing at his tax home shall also be taken into account under subsection (e)(3)(A) ( i i). "(iii)

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CERTAIN

RULES NOT TO A P P L Y. — Paragraph s

(4)(A) (ii) and (5) of subsection (e) shall not apply with respect to housing expenses for the qualified second household. " (C) REQUIREMENT THAT SPOUSE AND DEPENDENTS RESIDE W I T H INDIVIDUAL FOR PURPOSES OF SCHOOLING AND HOME LEAVE.—

" (i) IN GENERAL.—The requirement of subsection (j)(3) that the dependent or spouse of the individual (as the case may be) reside with the individual a t h i s tax home shall be treated as met if such spouse or dependent resides a t the qualified second household.

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