
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC123]

 
                     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
 
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.

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


                            Prior Provisions

    A prior section 123 was renumbered section 139 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.''
