Page:United States Statutes at Large Volume 95.djvu/223

 PUBLIC LAW 97-34—AUG. 13, 1981

95 STAT. 197

amount allowable under section 170(a) which is taken as a direct charitable deduction for the taxable year under section 170(i)." (c) CONFORMING AMENDMENTS.—

(1) Paragraph (1) of section 57(b) (relating to adjusted itemized deductions) is amended by inserting "without regard to paragraph (3) thereof after "section 63(f)^. (2) Subsection (f) of section 63 (relating to itemized deductions) is amended— (A) by striking out "and" at the end of paragraph (1), (B) by striking out the period at the end of paragraph (2) and inserting in lieu thereof ", and", and (C) by adding at the end thereof the following new paragraph: "(3) the direct charitable deduction." (3) Subparagraph (A) of section 3(a)(4) (relating to imposition of tax table tax) is amended to read as follows: "(A) reduced by the sum of— "(i) the excess itemized deductions, and "(ii) the direct charitable deduction, and". (d) EFFECTIVE DATE.—The amendments made by this section shall apply to contributions made after December 31, 1981, in taxable years beginning after such date. SEC. 122. 18-MONTH PERIODS FOR ROLLOVER OF PRINCIPAL RESIDENCE INCREASED TO 2 YEARS. (a) IN GENERAL.—Section 1034 (relating to rollover of gain on sale of principal residence) is amended by striking out "18 months" each place it appears and inserting in lieu thereof "2 years".

26 USC 57. 26 USC 63.

26 USC 3.

26 USC 170 note.

26 USC 1034.

(b) CONFORMING AMENDMENTS.—

(1) Paragraph (4) of section 1034(c) is amended by striking out "18-month ' and inserting in lieu thereof "2-year". (2) Paragraph (5) of section 1034(c) is hereby repealed. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to old residences (within the meaning of section 1034 of the Internal Revenue Code of 1954) sold or exchanged— (1) after July 20, 1981, or (2) on or before such date, if the rollover period under such section (determined without regard to the amendments made by this section) expires on or after such date. SEC. 123. ONE-TIME EXCLUSION OF GAIN INCREASED TO $125,000. (a) IN GENERAL.—Paragraph (1) of section 121(b) (relating to onetime exclusion of gain from sale of principal residence by individual who has attained age 55) is amended by striking out "$100,000 ($50,000" and inserting in lieu thereof "$125,000 ($62,500". (b) EFFECTIVE DATE.—The amendment made by this section shall apply to residences sold or exchanged after July 20, 1981.

26 USC 1034 ^°^^-

26 USC 121.

26 USC 121 note.

SEC. 124. INCREASES IN CREDIT ALLOWABLE FOR EXPENSES FOR HOUSEHOLD AND DEPENDENT CARE SERVICES NECESSARY FOR GAINFUL EMPLOYMENT. (a) INCREASE IN PERCENTAGE OF EXPENSES ALLOWED AS CREDIT.—

Subsection (a) of section 44A (relating to expenses for household and 26 USC 44A. dependent care services necessary for gainful employment) is amended to read as follows: "(a) ALLOWANCE OF CREDIT.—

"(1) IN GENERAL.—In the case of an individual who maintains a household which includes as a member one or more qualifying individuals (as defined in subsection (c)(1)), there shall be allowed

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