12 2 STA T .39 21 PUBLIC LA W 11 0– 3 4 3 —O CT. 3 , 200 8oftheR o b e r t T.S t a ffor dDis aster Re l ief a n d Em er g en cyA ssist - ance Act by reason of Hu rricane Ik e , and (2) determined by the P resident to w arrant indi v idual or individual and p ublic assistance from the F ederal G overnment under such Act with respect to damages attributable to Hurri- cane Ike. Subti t leB—Na ti on al D i s aste rR elie fSEC.706 . LO SSES AT T RIBU TABLE TO F E D ERALL Y DECLARED DISAS - TERS. (a) WAIVEROF A DJUST ED GROSS I NC O M E L IMITATION. — ( 1 )IN G ENERA L .—Subsection (h) of section 1 65 is amended by redesignating paragraphs ( 3 )and( 4 ) as paragraphs (4) and (5), respectively, and by inserting after paragraph (2) the fol- lowing new paragraph
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‘(3) S P ECIAL RULE FOR LOSSES IN FEDERALL Y DECLARED DISASTERS.— ‘‘(A) IN GENERAL.—If an individual has a net disaster loss for any ta x able year, the amount determined under paragraph (2)(A)(ii) shall be the sum of— ‘‘(i) such net disaster loss, and ‘‘(ii) so much of the excess referred to in the matter preceding clause (i) of paragraph (2)(A) (reduced by the amount in clause (i) of this subparagraph) as exceeds 1 0 percent of the ad j usted gross income of the individual. ‘‘( B ) N ET DISASTER LOSS.—For purposes of subpara- graph (A), the term ‘net disaster loss ’ means the excess of— ‘‘(i) the personal casualty losses— ‘‘(I) attributable to a federally declared dis- aster occurring before J anuary 1, 2010, and ‘‘(II) occurring in a disaster area, over ‘‘(ii) personal casualty gains. ‘‘( C ) FEDERALLY DECLARED DISASTER.—For purposes of this paragraph— ‘‘(i) FEDERALLY DECLARED DISASTER.—The term ‘federally declared disaster’ means any disaster subse- q uently determined by the President of the U nited States to warrant assistance by the Federal Govern- ment under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. ‘‘(ii) DISASTER AREA.—The term ‘disaster area’ means the area so determined to warrant such assist- ance.’’. (2) CONFORMING AMENDMENTS.— (A) Section 165(h)(4)(B) (as so redesignated) is amended by striking ‘‘paragraph (2)’’ and inserting ‘‘para- graphs (2) and (3)’’. (B) Section 165(i)(1) is amended by striking ‘‘loss’’ and all that follows through ‘‘Act’’ and inserting ‘‘loss occurring in a disaster area (as defined by clause (ii) of subsection (h)(3)(C)) and attributable to a federally declared disaster (as defined by clause (i) of such subsection)’’. 26USC1 6 5.
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