SUSPENSION OF 5-YEAR PERIOD DURING SERVICE WITH THE PEACE CORPS.

SEC. 110. SUSPENSION OF 5-YEAR PERIOD DURING SERVICE WITH THE PEACE CORPS.(a) In General.—Subsection (d) of section 121 (relating to special rules) is amended by adding at the end the following new paragraph:“(12) Peace corps.—“(A) In general.—At the election of an individual with respect to a property, the running of the 5-year period described in subsections (a) and (c)(1)(B) and paragraph (7) of this subsection with respect to such property shall be suspended during any period that such individual or such individual’s spouse is serving outside the United States—“(i) on qualified official extended duty (as defined in paragraph (9)(C)) as an employee of the Peace Corps, or“(ii) as an enrolled volunteer or volunteer leader under section 5 or 6 (as the case may be) of the Peace Corps Act (22 U.S.C. 2504, 2505).122 STAT. 1634“(B) Applicable rules.—For purposes of subparagraph (A), rules similar to the rules of subparagraphs (B) and (D) shall apply.”.(b) Effective Date.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2007.