taxpayer who enters into a written 
binding contract before December 15, 
2017, to close on the purchase of a 
principal residence before January 1, 
2018, and who purchases such resi-
dence before April 1, 2018, the term 
‘pre-December 15, 2017, indebtedness’ 
shall include indebtedness secured by 
such residence. 
‘‘(iii) REFINANCING INDEBTEDNESS.— 
‘‘(I) IN GENERAL.—In the case of 
any indebtedness which is incurred to 
refinance indebtedness, such refinanced 
indebtedness shall be treated for pur-
poses of this subparagraph as incurred 
on the date that the original indebted-
ness was incurred to the extent the 
amount of the indebtedness resulting 
from such refinancing does not exceed 
the amount of the refinanced indebted-
ness. 
‘‘(II) LIMITATION ON PERIOD OF 
REFINANCING.—Subclause (I) shall not 
apply to any indebtedness after the ex-
piration of the term of the original in-
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debtedness or, if the principal of such 
original indebtedness is not amortized 
over its term, the expiration of the 
term of the 1st refinancing of such in-
debtedness (or if earlier, the date which 
is 30 years after the date of such 1st 
refinancing).’’. 
(d) COORDINATION WITH TREATMENT OF INDEBTED-
NESS INCURRED ON OR BEFORE OCTOBER 13, 1987.—Sec-
tion 163(h)(3)(D) is amended— 
(1) by striking clause (ii) and redesignating 
clauses (iii) and (iv) as clauses (ii) and (iii), respec-
tively, and 
(2) in clause (iii) (as so redesignated)— 
(A) by striking ‘‘clause (iii)’’ in the matter 
preceding subclause (I) and inserting ‘‘clause 
(ii)’’, and 
(B) by striking ‘‘clause (iii)(I)’’ in sub-
clauses (I) and (II) and inserting ‘‘clause 
(ii)(I)’’. 
(e) COORDINATION WITH EXCLUSION
OF INCOME 
FROM DISCHARGE OF INDEBTEDNESS.—Section 108(h)(2) 
is amended by striking ‘‘$1,000,000 ($500,000’’ and insert-
ing ‘‘$750,000 ($375,000’’. 
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(f) CONFORMING AMENDMENT.—Section 163(h)(3) is 
amended by striking subparagraph (F). 
(g) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2017. 
SEC. 144. MODIFICATION OF DEDUCTION FOR PERSONAL 
CASUALTY LOSSES. 
(a) IN GENERAL.—Section 165(h)(5)(A) is amended 
by striking ‘‘in a taxable year beginning after December 
31, 2017, and before January 1, 2026,’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 165(h)(5)(B) is amended by striking 
‘‘for any taxable year to which subparagraph (A) ap-
plies’’. 
(2) Section 165(h)(5) is amended by striking 
‘‘FOR TAXABLE YEARS 2018 THROUGH 2025’’ in the 
heading thereof and inserting ‘‘TO LOSSES ATTRIB-
UTABLE TO FEDERALLY DECLARED DISASTERS’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to losses sustained in taxable years be-
ginning after December 31, 2017. 
SEC. 145. TERMINATION OF MISCELLANEOUS ITEMIZED DE-
DUCTIONS. 
(a) IN GENERAL.—Section 67 is amended— 
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(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) IN GENERAL.—In the case of an individual, mis-
cellaneous itemized deductions shall not be allowed.’’, and 
(2) by striking subsection (g). 
(b) MOVEMENT OF DEFINITION OF ADJUSTED GROSS 
INCOME FOR ESTATES AND TRUSTS.— 
(1) Section 67 is amended by striking subsection 
(e). 
(2) Section 641 is amended by adding at the end 
the following new subsection: 
‘‘(d) COMPUTATION OF ADJUSTED GROSS INCOME.— 
For purposes of this title, the adjusted gross income of an 
estate or trust shall be computed in the same manner as 
in the case of an individual, except that— 
‘‘(1) the deductions for costs which are paid or 
incurred in connection with the administration of the 
estate or trust and which would not have been in-
curred if the property were not held in such trust or 
estate, and 
‘‘(2) the deductions allowable under sections 
642(b), 651, and 661, 
shall be treated as allowable in arriving at adjusted gross 
income.’’. 
(c) CONFORMING AMENDMENTS.— 
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(1) Section 56(b)(1)(A) is amended to read as 
follows: 
‘‘(A) CERTAIN TAXES.—No deduction (other 
than a deduction allowable in computing ad-
justed gross income) shall be allowed for any 
taxes described in paragraph (1), (2), or (3) of 
section 
164(a) 
or 
clause 
(ii) 
of 
section 
164(b)(5)(A).’’. 
(2) Section 56(b)(1)(C), as amended by the pre-
ceding provisions of this Act, is amended by striking 
‘‘subparagraph (A)(ii)’’ and inserting ‘‘subparagraph 
(A)’’. 
(3) Section 62(a) is amended by striking ‘‘sub-
title’’ in the matter preceding paragraph (1) and in-
serting ‘‘title’’. 
(4) Section 641(c)(2)(E) is amended to read as 
follows: 
‘‘(E) Section 642(c) shall not apply.’’. 
(5) Section 1411(a)(2) is amended by striking 
‘‘(as defined in section 67(e))’’. 
(6) Section 6654(d)(1)(C) is amended by striking 
clause (iii). 
(7) Section 67 is amended in the heading, by 
striking ‘‘2-PERCENT
FLOOR
ON’’ and inserting 
‘‘DENIAL OF’’. 
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(8) The table of sections for part 1 of subchapter 
B of chapter 1 is amended by striking the item relat-
ing to section 67 and inserting the following new 
item: 
‘‘Sec. 67. Denial of miscellaneous itemized deductions.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2017. 
SEC. 146. REPEAL OF OVERALL LIMITATION ON ITEMIZED 
DEDUCTIONS. 
(a) IN GENERAL.—Part 1 of subchapter B of chapter 
1 is amended by striking section 68 (and the item relating 
to such section in the table of sections for such part). 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1(f)(7)(A), as amended by sections 
121 and 141, is amended by striking ‘‘or section 
68(b)(2)’’. 
(2) Section 56(b)(1), as amended by the pre-
ceding provisions of this Act, is amended by striking 
subparagraph (E). 
(3) Section 164(b)(5)(H)(ii)(III) is amended by 
striking ‘‘(as determined under section 68(b))’’. 
(4) Section 164(b)(5)(H) is amended by adding 
at the end the following new clause: 
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‘‘(iii) 
APPLICABLE
AMOUNT
DE-
FINED.—For purposes of clause (ii), the 
term ‘applicable amount’ means— 
‘‘(I) $300,000 in the case of a 
joint return or a surviving spouse, 
‘‘(II) $275,000 in the case of a 
head of household, 
‘‘(III) $250,000 in the case of an 
individual who is not married and 
who is not a surviving spouse or head 
of household, and 
‘‘(IV) 1⁄2 the amount applicable 
under subclause (I) in the case of a 
married individual filing a separate 
return. 
For purposes of this paragraph, marital 
status shall be determined under section 
7703. In the case of any taxable year begin-
ning in calendar years after 2017, each of 
the dollar amounts in this clause shall be 
increased by an amount equal to such dol-
lar amount, multiplied by the cost-of-living 
adjustment determined under section 1(f)(3) 
for the calendar year in which the taxable 
year begins, determined by substituting 
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