I 

116TH CONGRESS 

2D SESSION H. R. 5726 

To amend the Internal Revenue Code of 1986 to allow, in certain cases, 

an increase in the limitation on the exclusion for gains from a sale 

or exchange of a principal residence. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 30, 2020 

Mr. GOTTHEIMER (for himself and Mr. KATKO) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to allow, 

in certain cases, an increase in the limitation on the 

exclusion for gains from a sale or exchange of a principal 

residence. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Senior Housing Im5 provement and Retirement Accounts Act of 2020’’ or the 

6 ‘‘Senior Housing IRA Act of 2020’’. 


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1 SEC. 2. INCREASE IN EXCLUSION LIMITATION FOR GAINS 

2 FROM CERTAIN SALES OF PRINCIPAL RESI3 DENCES. 

4 (a) IN GENERAL.—Subsection (b) of section 121 of 

5 the Internal Revenue Code of 1986 is amended by adding 

6 at the end the following new paragraph: 

7 ‘‘(6) SPECIAL RULES FOR CERTAIN TAX8 PAYERS.— 

9 ‘‘(A) IN GENERAL.—In the case of a quali10 fied individual, paragraph (1) shall be applied 

11 by inserting ‘the sum of’ before ‘$250,000’ and 

12 by inserting ‘and the amount treated under 

13 paragraph (8) of section 408A(c) as a qualified 

14 rollover contribution to a Roth IRA of the 

15 qualified individual referred to in paragraph 

16 (6)(A)’ after ‘$250,000’. 

17 ‘‘(B) QUALIFIED INDIVIDUAL.—The term 

18 ‘qualified individual’ means, with respect to a 

19 sale or exchange of property to which sub20 section (a) applies, an individual who— 

21 ‘‘(i) has attained the age of 55 before 

22 the date of such sale or exchange, 

23 ‘‘(ii) has owned and used the property 

24 as such individual’s principal residence for 

25 a period of not less than 20 years, and 


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1 ‘‘(iii) has not previously elected to 

2 treat a contribution to a Roth IRA as a 

3 qualified rollover contribution under para4 graph (8) of section 408A(c). 

5 In the case of a joint return, ownership and use 

6 of the property by an individual’s spouse shall 

7 be taken into account as ownership and use by 

8 such individual.’’. 

9 (b) REMOVING ROTH IRA CONTRIBUTION LIMITS.— 

10 (1) IN GENERAL.—Subsection (c) of section 

11 408A of such Code is amended by adding at the end 

12 the following new paragraph: 

13 ‘‘(8) PROCEEDS FROM SALES OF CERTAIN RESI14 DENCES TREATED AS ROLLOVER CONTRIBUTIONS.— 

15 ‘‘(A) IN GENERAL.—In the case of a quali16 fied individual (as defined in subsection 

17 (b)(6)(B) of section 121), a contribution to a 

18 Roth IRA of gain from a sale or exchange of 

19 property described in subsection (a) of such sec20 tion may be treated, at the election of such tax21 payer, as a qualified rollover contribution from 

22 a Roth IRA for purposes of this section. 

23 ‘‘(B) LIMITATION.—The amount of gain 

24 that may be treated as a qualified rollover conVerDate Sep 11 2014 02:13 Jan 31, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5726.IH H5726

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1 tribution under subparagraph (A) for a tax2 payer may not exceed the excess of— 

3 ‘‘(i) the gain from the sale or ex4 change described in subparagraph (A), 

5 over 

6 ‘‘(ii) the amount that would (without 

7 regard to paragraph (6) of subsection (b) 

8 of such section) be excluded from gross in9 come under subsection (a) of section 

10 121.’’. 

11 (c) EFFECTIVE DATE.—The amendment made by 

12 this section shall apply with respect to sales or exchanges 

13 of property in taxable years beginning after the date of 

14 the enactment of this Act. 

Æ 


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