OVERALL LIMITATION ON ITEMIZED DEDUCTIONS.

SEC. 11103. OVERALL LIMITATION ON ITEMIZED DEDUCTIONS. (a) In General.— Part I of subchapter B of chapter 1 is amended by adding at the end thereof the following new section: “SEC. 68. OVERALL LIMITATION ON ITEMIZED DEDUCTIONS. “(a) General Rule.— In the case of an individual whose adjusted gross income exceeds the applicable amount, the amount of the itemized deductions otherwise allowable for the taxable year shall be reduced by the lesser of— “(1) 3 percent of the excess of adjusted gross income over the applicable amount, or “(2) 80 percent of the amount of the itemized deductions otherwise allowable for such taxable year. “(b) Applicable Amount.— “(1) In general.— For purposes of this section, the term ‘applicable amount’ means $100,000 ($50,000 in the case of a separate return by a married individual within the meaning of section 7703). “(2) Inflation adjustments.— In the case of any taxable year beginning in a calendar year after 1991, each dollar amount contained in paragraph (1) shall be increased by an amount equal to— “(A) such dollar amount, multiplied by “(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting ‘calendar year 1990’ for ‘calendar year 1989’ in subparagraph (B) thereof.” “(c) Exception for Certain Itemized Deductions.— For purposes of this section, the term ‘itemized deductions’ does not include— “(1) the deduction under section 213 (relating to medical, etc, expenses), “(2) any deduction for investment interest (as defined in section 163(d)), and “(3) the deduction under section 165(a) for losses described in subsection (c)(3) or (d) of section 165. “(d) Coordination With Other Limitations.— This section shall be applied after the application of any other limitation on the allowance of any itemized deduction. “(e) Exception for Estates and Trusts.— This section shall not apply to any estate or trust. “(f) Termination.— This section shall not apply to any taxable year beginning after December 31, 1995.” (b) Coordination With Minimum Tax.— Paragraph (1) of section 56(b) is amended by adding at the end thereof the following new subparagraph: “(F) Section 68 not applicable.— Section 68 shall not apply.” (c) Conforming Amendment.— Subparagraph (A) of section 1(f)(6) is amended by inserting “section 68(b)(2)” after “section 63(c)(4),”. 104 STAT. 1388–407 (d) Clerical Amendment.— The table of sections for part I of subchapter B of chapter 1 is amended by adding a7777 So in original. Probably should be “at”. the end thereof the following new item: “Sec. 68. Overall limitation on itemized deductions.” (e) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 1990.