Page 31 - Tax Reform

PUBLIC LAW 115–97—DEC. 22, 2017 131 STAT. 2081

(C) the standard deduction determined under section
63(c) of such Code shall be increased by the net disaster
loss, and
(D) section 56(b)(1)(E) of such Code shall not apply
to so much of the standard deduction as is attributable
to the increase under subparagraph (C) of this paragraph.
(2) NET DISASTER LOSS.—For purposes of this subsection,
the term ‘‘net disaster loss’’ means the excess of qualified dis-
aster-related personal casualty losses over personal casualty
gains (as defined in section 165(h)(3)(A) of the Internal Revenue
Code of 1986).
(3) QUALIFIED DISASTER-RELATED PERSONAL CASUALTY
LOSSES.—For purposes of this paragraph, the term ‘‘qualified
disaster-related personal casualty losses’’ means losses
described in section 165(c)(3) of the Internal Revenue Code
of 1986 which arise in a disaster area described in subsection
(a) on or after January 1, 2016, and which are attributable
to the events giving rise to the Presidential declaration
described in subsection (a) which was applicable to such area.

PART IV—EDUCATION
SEC. 11031. TREATMENT OF STUDENT LOANS DISCHARGED ON
ACCOUNT OF DEATH OR DISABILITY.
(a) IN GENERAL.—Section 108(f) is amended by adding at the 26 USC 108.
end the following new paragraph:
‘‘(5) DISCHARGES ON ACCOUNT OF DEATH OR DISABILITY.—
‘‘(A) IN GENERAL.—In the case of an individual, gross
income does not include any amount which (but for this
subsection) would be includible in gross income for such
taxable year by reasons of the discharge (in whole or in
part) of any loan described in subparagraph (B) after
December 31, 2017, and before January 1, 2026, if such
discharge was—
‘‘(i) pursuant to subsection (a) or (d) of section
437 of the Higher Education Act of 1965 or the parallel
benefit under part D of title IV of such Act (relating
to the repayment of loan liability),
‘‘(ii) pursuant to section 464(c)(1)(F) of such Act,
or
‘‘(iii) otherwise discharged on account of the death
or total and permanent disability of the student.
‘‘(B) LOANS DESCRIBED.—A loan is described in this
subparagraph if such loan is—
‘‘(i) a student loan (as defined in paragraph (2)),
or
‘‘(ii) a private education loan (as defined in section
140(7) of the Consumer Credit Protection Act (15
U.S.C. 1650(7))).’’.
(b) EFFECTIVE DATE.—The amendment made by this section 26 USC 108 note.
shall apply to discharges of indebtedness after December 31, 2017.
SEC. 11032. 529 ACCOUNT FUNDING FOR ELEMENTARY AND SEC-
ONDARY EDUCATION.
(a) IN GENERAL.—
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(1) IN GENERAL.—Section 529(c) is amended by adding at
the end the following new paragraph: