Senior Housing IRA Act of 2017

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. Short title This Act may be cited as the Senior Housing Improvement and Retirement Accounts Act of 2017 Senior Housing IRA Act of 2017 2. Increase in exclusion limitation for gains from certain sales of principal residences (a) In general Subsection (b) of section 121 (6) Special rules for certain taxpayers (A) In general In the case of a qualified individual, paragraph (1) shall be applied by inserting the sum of $250,000 and the amount treated under paragraph (8) of section 408A(c) as a qualified rollover contribution to a Roth IRA of the qualified individual referred to in paragraph (6)(A) $250,000 (B) Qualified individual The term qualified individual (i) has attained the age of 55 before the date of such sale or exchange, (ii) has owned and used the property as such individual’s principal residence for a period of not less than 20 years, and (iii) has not previously elected to treat a contribution to a Roth IRA as a qualified rollover contribution under paragraph (8) of section 408A(c). In the case of a joint return, ownership and use of the property by an individual’s spouse shall be taken into account as ownership and use by such individual. . (b) Removing Roth IRA contribution limits (1) In general Subsection (c) of section 408A of such Code is amended by adding at the end the following new paragraph: (8) Proceeds from sales of certain residences treated as rollover contributions (A) In general In the case of a qualified individual (as defined in subsection (b)(6)(B) of section 121), a contribution to a Roth IRA of gain from a sale or exchange of property described in subsection (a) of such section may be treated, at the election of such taxpayer, as a qualified rollover contribution from a Roth IRA for purposes of this section. (B) Limitation The amount of gain that may be treated as a qualified rollover contribution under subparagraph (A) for a taxpayer may not exceed the excess of— (i) the gain from the sale or exchange described in subparagraph (A), over (ii) the amount that would (without regard to paragraph (6) of subsection (b) of such section) be excluded from gross income under subsection (a) of section 121. . (c) Effective date The amendment made by this section shall apply with respect to sales or exchanges of property in taxable years beginning after the date of the enactment of this Act.

Summary: Senior Housing Improvement and Retirement Accounts Act of 2017 or the Senior Housing IRA Act of 2017 This bill amends the Internal Revenue Code, with respect to the tax treatment of gains from the sale or exchange of a principal residence, to: (1) allow a qualified individual to contribute the gains from the sale or exchange to a Roth Individual Retirement Arrangement (IRA) as a qualified rollover contribution which is exempt from contribution limits, and (2) increase the $250,000 limit on the exclusion from gross income for gains from the sale of a principal residence by the amount of the rollover contribution. The bill applies to individuals who: (1) have attained the age of 55 before the date of the sale or exchange, (2) have owned and used the property as a principal residence for at least 20 years, and (3) have not previously elected to treat a contribution to a Roth IRA as a qualified rollover contribution under the authority provided by this bill.