12 2 STA T .39 22 PUBLIC LA W 11 0– 3 4 3 —O CT. 3 , 200 8(C)Section165 (i)( 4 )i sam en d ed by st r i k in g‘ ‘ P resi - dentia l ly declared disaster (as de f ined by section 1 03 3( h )(3)) ’ ’ and inserting ‘‘federally declared disaster (as defined by s u bsection (h)(3)(C)(i)’’ . ( D )(i) So much of subsection (h) of section 1033 as p recedes subparagraph ( A ) of paragraph (1) thereof is amended to read as follo w s
‘‘(h) S PECIALRU LE SFOR PROPER TY DA M A G E DB Y F EDERALLY DECLARED DISASTERS. — ‘‘(1) PRI N CIPAL RESIDENCES.— I ftheta x payer’s principal residence or any of its contents is located in a disaster area and is compulsorily or in v oluntarily converted as a result of a federally declared disaster—’’. (ii) Paragraph ( 2 ) of section 1033(h) is amended by striking ‘‘investment’’ and all that follows through ‘‘dis- aster’’ and inserting ‘‘investment located in a disaster area and compulsorily or involuntarily converted as a result of a federally declared disaster’’. (iii) Paragraph (3) of section 1033(h) is amended to read as follows: ‘‘(3) FEDERALLY DECLARED DISASTER
DISASTER AREA.— T he terms ‘‘federally declared disaster’’ and ‘‘disaster area’’ shall have the respective meaning given such terms by section 165(h)(3)(C).’’. (iv) Section 13 9 (c)(2) is amended to read as follows: ‘‘(2) federally declared disaster (as defined by section 165(h)(3)(C)(i)) , ’’. (v) Subclause (II) of section 1 7 2(b)(1)(F)(ii) is amended by striking ‘‘Presidentially declared disasters (as defined in section 1033(h)(3))’’ and inserting ‘‘federally declared disasters (as defined by subsection (h)(3)(C)(i))’’. (vi) Subclause (III) of section 172(b)(1)(F)(ii) is amended by striking ‘‘Presidentially declared disasters’’ and inserting ‘‘federally declared disasters’’. (vii) Subsection (a) of section 750 8 A is amended by striking ‘‘Presidentially declared disaster (as defined in section 1033(h)(3))’’ and inserting ‘‘federally declared dis- aster (as defined by section 165(h)(3)(C)(i))’’. (b) INCREASE IN STANDARD DEDUCTION BY DISASTER CASUALTY L OSS.— (1) IN GENERAL.—Paragraph (1) of section 63(c), as amended by the H ousing Assistance Tax Act of 2008, is amended by striking ‘‘and’’ at the end of subparagraph ( B ), by striking the period at the end of subparagraph (C) and inserting ‘‘, and’’, and by adding at the end the following new subparagraph: ‘‘(D) the disaster loss deduction.’’. (2) DISASTER LOSS DEDUCTION.—Subsection (c) of section 63, as amended by the Housing Assistance Tax Act of 2008, is amended by adding at the end the following new paragraph: ‘‘(8) DISASTER LOSS DEDUCTION.—For the purposes of para- graph (1), the term ‘disaster loss deduction’ means the net disaster loss (as defined in section 165(h)(3)(B)).’’. (3) ALLO W ANCE IN COMPUTING ALTERNATI V E MINIMUM TA X - ABLE INCOME.—Subparagraph ( E ) of section 56(b)(1) is amended by adding at the end the following new sentence: ‘‘The preceding 26USC1 6 5.
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