PUBLIC LAW 101-508—NOV. 5, 1990 104 STAT. 1388-407 (d) CLERICAL AMENDMENT. —The table of sections for part I of subchapter B of chapter 1 is amended by adding a '^'^ the end thereof the following new item: "Sec. 68. Overall limitation on itemized deductions." (e) EFFECTIVE DATE. —The amendments made by this section shall 26 USC 1 note, apply to taxable years beginning after December 31, 1990. SEC. 11104. PHASEOUT OF PERSONAL EXEMPTIONS. (a) GENERAL RULE.— Subsection (d) of section 151 is amended to read as follows: "(d) EXEMPTION AMOUNT. —For purposes of this section— "(1) IN GENERAL.— Except as otherwise provided in this subsection, the term 'exemption amount' means $2,000. "(2) EXEMPTION AMOUNT DISALLOWED IN CASE OF CERTAIN DEPENDENTS. — In the case of an individual with respect to whom a deduction under this section is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins, the exemption amount applicable to such individual for such individual's taxable year shall be zero. "(3) PHASEOUT. — "(A) IN GENERAL.— In the case of any taxpayer whose adjusted gross income for the taxable year exceeds the threshold amount, the exemption amount shall be reduced by the applicable percentage. "(B) APPLICABLE PERCENTAGE. — For purposes of subparagraph (A), the term 'applicable percentage' means 2 percentage points for each $2,500 (or fraction thereof) by which the taxpayer's adjusted gross income for the taxable year exceeds the threshold amount. In the case of a married individual filing a separate return, the preceding sentence shall be applied by substituting '$1,250' for '$2,500'. In no event shall the applicable percentage exceed 100 percent. "(C) THRESHOLD AMOUNT.— For purposes of this paragraph, the term 'threshold amount' means— "(i) $150,000 in the case of a joint of a return or a surviving spouse (as defined in section 2(a)), "(ii) $125,000 in the case of a head of a household (as defined in section 2(b) '®, "(iii) $100,000 in the case of an individual who is not married and who is not a surviving spouse or head of a household, and "(iv) $75,000 in the case of a married individual filing a separate return. For purposes of this paragraph, marital status shall be determined under section 7703. "(D) COORDINATION WITH OTHER PROVISIONS. — The provisions of this paragraph shall not apply for purposes of determining whether a deduction under this section with respect to any individual is allowable to another taxpayer for any taxable year. "(E) TERMINATION.— Th is paragraph shall not apply to any taxable year beginning after December 31, 1995. "(4) INFLATION ADJUSTMENTS. — " (A) ADJUSTMENT TO BASIC AMOUNT OF EXEMPTION. — In the case of any taxable year beginning in a calendar year ^^ So in original. Probably should be "at". ^* So in original. Probably should be "2(b))".
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