Devildogg4ever
11-04-03, 03:59 AM
Mon Nov 3, 7:55 PM ET
By MARY DALRYMPLE, AP Tax Writer
WASHINGTON - New tax breaks for military personnel, including expanded benefits for reservists and the families of fallen soldiers, passed the Senate on Monday.
The bill doubles the death gratuity paid to the families of soldiers killed in active duty to $12,000 and makes the entire payment tax-free. That item is identical to a bill the House passed unanimously last week.
The Senate expanded on the House's legislation by adding additional tax breaks for soldiers and their families.
The Senate passed the bill by voice vote hours after it cleared an $87.5 billion spending bill to finance military operations and reconstruction in Iraq and Afghanistan.
The tax changes include suspension of residency requirements for active duty personnel who sell their houses. The change ensures that soldiers deployed away from home do not have to pay capital gains taxes on home sales.
Reservists would be allowed to claim a new deduction for travel expenses.
The bill also ensures that child care provided to soldiers' families is not treated as a taxable benefit.
The bill balances new tax cuts with an extension of customs fees, eliminating any cost to the Treasury.
The Senate dropped an item that had caused concern in the House, which had been meant to deter individuals who renounced their U.S. citizenship to avoid paying federal income taxes.
New tax breaks for military personnel have been passed repeatedly by the House and the Senate, but lawmakers in the two bodies have been unable to reconcile their differences.
http://story.news.yahoo.com/news?tmpl=story&cid=512&ncid=703&e=8&u=/ap/20031104/ap_on_go_co/congress_taxes
By MARY DALRYMPLE, AP Tax Writer
WASHINGTON - New tax breaks for military personnel, including expanded benefits for reservists and the families of fallen soldiers, passed the Senate on Monday.
The bill doubles the death gratuity paid to the families of soldiers killed in active duty to $12,000 and makes the entire payment tax-free. That item is identical to a bill the House passed unanimously last week.
The Senate expanded on the House's legislation by adding additional tax breaks for soldiers and their families.
The Senate passed the bill by voice vote hours after it cleared an $87.5 billion spending bill to finance military operations and reconstruction in Iraq and Afghanistan.
The tax changes include suspension of residency requirements for active duty personnel who sell their houses. The change ensures that soldiers deployed away from home do not have to pay capital gains taxes on home sales.
Reservists would be allowed to claim a new deduction for travel expenses.
The bill also ensures that child care provided to soldiers' families is not treated as a taxable benefit.
The bill balances new tax cuts with an extension of customs fees, eliminating any cost to the Treasury.
The Senate dropped an item that had caused concern in the House, which had been meant to deter individuals who renounced their U.S. citizenship to avoid paying federal income taxes.
New tax breaks for military personnel have been passed repeatedly by the House and the Senate, but lawmakers in the two bodies have been unable to reconcile their differences.
http://story.news.yahoo.com/news?tmpl=story&cid=512&ncid=703&e=8&u=/ap/20031104/ap_on_go_co/congress_taxes