; and at the end of paragraph (2) and inserting a period, and by striking paragraph (3). (b) Conforming amendments (1) Section 165(h) is amended to read as follows: (h) Special rule where personal casualty gains exceed personal casualty losses (1) In general If the personal casualty gains for any taxable year exceed the personal casualty losses for such taxable year— (A) all such gains shall be treated as gains from sales or exchanges of capital assets, and (B) all such losses shall be treated as losses from sales or exchanges of capital assets. (2) Definitions of personal casualty gain and personal casualty loss For purposes of this subsection— (A) Personal casualty loss The term personal casualty loss means any loss of property not connected with a trade or business or a transaction entered into for profit, if such loss arises from fire, storm, shipwreck, or other casualty, or from theft. (B) Personal casualty gain The term personal casualty gain means the recognized gain from any involuntary conversion of property which is described in subparagraph (A) arising from fire, storm, shipwreck, or other casualty, or from theft. . (2) Section 165 is amended by striking subsection (k). (3) (A) Section 165(l)(1) is amended by striking a loss described in subsection (c)(3) and inserting an ordinary loss described in subsection (c)(2) . (B) Section 165(l) is amended— (i) by striking paragraph (5), (ii) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, and (iii) by inserting after paragraph (1) the following new paragraph: (2) Limitations (A) Deposit may not be federally insured No election may be made under paragraph (1) with respect to any loss on a deposit in a qualified financial institution if part or all of such deposit is insured under Federal law. (B) Dollar limitation With respect to each financial institution, the aggregate amount of losses attributable to deposits in such financial institution to which an election under paragraph (1) may be made by the taxpayer for any