I 

111TH CONGRESS 

1ST SESSION H. R. 755 

To amend the Internal Revenue Code of 1986 to exclude from gross income 

the gain from the sale or exchange of certain residences acquired before 

2013. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 28, 2009 

Mr. CALVERT 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 exclude 

from gross income the gain from the sale or exchange 

of certain residences acquired before 2013. 

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

3 SECTION 1. EXCLUSION FROM GROSS INCOME FOR GAIN 

4 FROM SALE OR EXCHANGE OF CERTAIN RESI5 DENCES ACQUIRED BEFORE 2013. 

6 (a) IN GENERAL.—Part III of subchapter B of chap7 ter 1 of the Internal Revenue Code of 1986 (relating to 

8 items specifically excluded from gross income) is amended 

9 by inserting after section 121 the following new section: 


jbell on PROD1PC69 with BILLS
2 

•HR 755 IH

1 ‘‘SEC. 121A. EXCLUSION OF GAIN FROM SALE OF 2 NON2 PRINCIPAL RESIDENCES. 

3 ‘‘(a) EXCLUSION.—In the case of an individual, gross 

4 income shall not include gain from the sale or exchange 

5 of a qualified residence owned by the taxpayer. 

6 ‘‘(b) LIMITATIONS.— 

7 ‘‘(1) IN GENERAL.—The amount of gain ex8 cluded from gross income under subsection (a) with 

9 respect to any sale or exchange shall not exceed 

10 $250,000 ($500,000 in the case of a joint return). 

11 ‘‘(2) SPECIAL RULE FOR CERTAIN SALES BY

12 SURVIVING SPOUSES.—In the case of a sale or ex13 change of property by an unmarried individual 

14 whose spouse is deceased on the date of such sale, 

15 paragraph (1) shall be applied by substituting 

16 ‘$500,000’ for ‘$250,000’ if such sale occurs not 

17 later than 2 years after the date of death of such 

18 spouse. 

19 ‘‘(3) LIMITATION BASED ON NUMBER OF RESI20 DENCES.—Subsection (a) shall apply only with re21 spect to 2 qualified residences of the taxpayer. 

22 ‘‘(c) QUALIFIED RESIDENCE.—For purposes of this 

23 section, the term ‘qualified residence’ means a single fam24 ily residence which is— 

25 ‘‘(1) owned by the taxpayer, 


jbell on PROD1PC69 with BILLS
3 

•HR 755 IH

1 ‘‘(2) not the principal residence (within the 

2 meaning of section 121) of the taxpayer, 

3 ‘‘(3) located in the United States, and 

4 ‘‘(4) acquired by the taxpayer after December 

5 31, 2008, and before January 1, 2012. 

6 ‘‘(d) APPLICABLE RULES.—For purposes of this sec7 tion, rules similar to the following rules of section 121 

8 shall apply: 

9 ‘‘(1) Paragraphs (1), (4), (5), (6), (8), and (11) 

10 of section 121(d). 

11 ‘‘(2) Subsection (e). 

12 ‘‘(3) Subsection (f).’’. 

13 (b) CLERICAL AMENDMENT.—The table of sections 

14 for part III of subchapter B of chapter 1 of such Code 

15 is amended by inserting after the item relating to section 

16 121 the following new item: 

‘‘Sec. 121A. Exclusion of gain from sale of 2 non-principal residences.’’. 

17 (c) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to property acquired after Decem19 ber 31, 2008. 

Æ 


jbell on PROD1PC69 with BILLS