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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4612 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4612

To amend the Internal Revenue Code of 1986 to exempt gain from the sale 
                   of a principal residence from tax.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 21, 1994

  Mr. Johnston of Florida (for himself, Mrs. Thurman, Mr. Wilson, Mr. 
 Faleomavaega, Mr. Canady, Mr. Royce, and Mr. Lipinski) 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 exempt gain from the sale 
                   of a principal residence from tax.

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

SECTION 1. EXCLUSION OF GAIN FROM SALE OF PRINCIPAL RESIDENCE.

    (a) General Rule.--The section heading and subsection (a) of 
section 121 of the Internal Revenue Code of 1986 are amended to read as 
follows:

``SEC. 121. EXCLUSION OF GAIN FROM SALE OF PRINCIPAL RESIDENCE BY 
              INDIVIDUAL.

    ``(a) General Rule.--Gross income does not include gain from the 
sale or exchange of property if, during the 5-year period ending on the 
date of the sale or exchange, such property has been owned and used by 
the taxpayer as the taxpayer's principal residence for periods 
aggregating 3 years or more.''
    (b) Conforming Amendments.--
            (1) Section 121 of such Code is amended by striking 
        subsections (b) and (c) and by redesignating subsection (d) as 
        subsection (b).
            (2) Paragraph (1) of section 121(b) of such Code (as so 
        redesignated) is amended by striking ``age, holding, and use'' 
        each place it appears and inserting ``holding and use''.
            (3) Paragraph (2) of section 121(b) of such Code is amended 
        to read as follows:
            ``(2) Property of deceased spouse.--For purposes of this 
        section, in the case of an unmarried individual whose spouse is 
        deceased on the date of the sale or exchange of property, if 
        the deceased spouse (during the 5-year period ending on the 
        date of the sale or exchange) satisfied the holding and use 
        requirements of subsection (a) with respect to such property, 
        then such individual shall be treated as satisfying the holding 
        and use requirements of subsection (a) with respect to such 
        property.''
            (4) Paragraph (3) of section 121(b) of such Code (as so 
        redesignated) is amended by striking ``subsection (a)(2)'' each 
        place it appears and inserting ``subsection (a)''.
            (5) Paragraph (9) of section 121(b) of such Code (as so 
        redesignated) is amended by striking ``subsection (a)(2)'' and 
        inserting ``subsection (a)''.
            (6) Sections 1033(i)(3), 1034(l), 1038(e)(1)(A), 
        1250(d)(7)(B), and 6012(c) of such Code are each amended--
                    (A) by striking ``one-time'', and
                    (B) by striking ``who has attained age 55''.
    (c) Clerical Amendments.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by striking the item 
relating to section 121 and inserting the following:

                              ``Sec. 121. Exclusion of gain from sale 
                                        of principal residence by 
                                        individual.''
    (d) Effective Date.--The amendments made by this section shall 
apply to sales and exchanges after the date of the enactment of this 
Act.

                                 <all>
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