Page:United States Statutes at Large Volume 100 Part 3.djvu/703

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PUBLIC LAW 99-000—MMMM. DD, 1986

PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2511

"(B) the value of the services provided." (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1986. SEC. 1164. TAX TREATMENT OF FACULTY HOUSING. (a) IN GENERAL.—Section 119 (relating to meals or lodging furnished for the convenience of the employer) is amended by adding at the end thereof the following new subsection: "(d) LODGING FURNISHED BY CERTAIN EDUCATIONAL INSTITUTIONS TO EMPLOYEES.—

"(1) IN GENERAL.—In the case of an employee of an educational institution, gross income shall not include the value of qualified campus lodging furnished to such employee during the taxable year. "(2) EXCEPTION IN CASES OF INADEQUATE RENT.—Paragraph (1)

shall not apply to the extent of the excess of— "(A) the lesser of^ "(i) 5 percent of the appraised value (as of the close of the calendar year in which the taxable year begins) of the qualified campus lodging, or "(ii) the average of the rentals paid by individuals (other than employees or students of the educational institution) during such calendar year for lodging provided by the educational institution which is comparable to the qualified campus lodging provided to the employee, over "(B) the rent paid by the employee for the qualified campus lodging during such calendar year. "(3) QuAUFiED CAMPUS LODGING.—For purposes of this subsection, the term 'qualified campus lodging' means lodging to which subsection (a) does not apply and which is— "(A) located on, or in the proximity of, a campus of the educational institution, and "(B) furnished to the employee, his spouse, and any of his dependents by or on behalf of such institution for use as a residence. "(4) EDUCATIONAL INSTITUTION.—For purposes of this paragraph, the term 'educational institution means an institution described in section 170(b)(l)(A)(ii).". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1985. SEC. 1165. LIMITATION ON ACCRUAL OF VACATION PAY. (a) GENERAL RULE.—Paragraph (1) of section 463(a) (relating to accrual of vacation pay) is amended by striking out "and expected to be paid during the taxable year or within 12 months following the close of the taxable year" and inserting in lieu thereof "and paid during the taxable year or within Vz months following the close of the taxable year". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1986. SEC. 1166. TREATMENT OF CERTAIN FULL-TIME LIFE INSURANCE SALESMEN. (a) GENERAL RULE.—Paragraph (20) of section 7701(a) (defining employee) is amended by striking out "and 106" and inserting in lieu thereof "106, and 125".