Internal Revenue Code:Sec. 123. Amounts received under insurance contracts for certain living expenses

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter B - Computation of Taxable Income
         PART III - ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME
       

Statute

    Sec. 123. Amounts received under insurance contracts for certain
        living expenses
 
    (a) General rule
      In the case of an individual whose principal residence is damaged
    or destroyed by fire, storm, or other casualty, or who is denied
    access to his principal residence by governmental authorities
    because of the occurrence or threat of occurrence of such a
    casualty, gross income does not include amounts received by such
    individual under an insurance contract which are paid to compensate
    or reimburse such individual for living expenses incurred for
    himself and members of his household resulting from the loss of use
    or occupancy of such residence.
    (b) Limitation
      Subsection (a) shall apply to amounts received by the taxpayer
    for living expenses incurred during any period only to the extent
    the amounts received do not exceed the amount by which -
        (1) the actual living expenses incurred during such period for
      himself and members of his household resulting from the loss of
      use or occupancy of their residence, exceed
        (2) the normal living expenses which would have been incurred
      for himself and members of his household during such period.
 

Sources

    (Added Pub. L. 91-172, title IX, Sec. 901(a), Dec. 30, 1969, 83
    Stat. 709.)
 

Miscellaneous

                              PRIOR PROVISIONS
      A prior section 123 was renumbered section 140 of this title.
                               EFFECTIVE DATE
      Section 901(c) of Pub. L. 91-172 provided that: ''The amendments
    made by this section (enacting this section) shall apply with
    respect to amounts received on or after January 1, 1969.''