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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. EXCLUSION FROM GROSS INCOME FOR GAIN 
FROM SALE OR EXCHANGE OF CERTAIN RESI-
DENCES ACQUIRED BEFORE 2013. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
items specifically excluded from gross income) is amended 
by inserting after section 121 the following new section: 
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‘‘SEC. 121A. EXCLUSION OF GAIN FROM SALE OF 2 NON- 
PRINCIPAL RESIDENCES. 
‘‘(a) EXCLUSION.—In the case of an individual, gross 
income shall not include gain from the sale or exchange 
of a qualified residence owned by the taxpayer. 
‘‘(b) LIMITATIONS.— 
‘‘(1) IN GENERAL.—The amount of gain ex-
cluded from gross income under subsection (a) with 
respect to any sale or exchange shall not exceed 
$250,000 ($500,000 in the case of a joint return). 
‘‘(2) SPECIAL RULE FOR CERTAIN SALES BY 
SURVIVING SPOUSES.—In the case of a sale or ex-
change of property by an unmarried individual 
whose spouse is deceased on the date of such sale, 
paragraph (1) shall be applied by substituting 
‘$500,000’ for ‘$250,000’ if such sale occurs not 
later than 2 years after the date of death of such 
spouse. 
‘‘(3) LIMITATION BASED ON NUMBER OF RESI-
DENCES.—Subsection (a) shall apply only with re-
spect to 2 qualified residences of the taxpayer. 
‘‘(c) QUALIFIED RESIDENCE.—For purposes of this 
section, the term ‘qualified residence’ means a single fam-
ily residence which is— 
‘‘(1) owned by the taxpayer, 
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‘‘(2) not the principal residence (within the 
meaning of section 121) of the taxpayer, 
‘‘(3) located in the United States, and 
‘‘(4) acquired by the taxpayer after December 
31, 2008, and before January 1, 2012. 
‘‘(d) APPLICABLE RULES.—For purposes of this sec-
tion, rules similar to the following rules of section 121 
shall apply: 
‘‘(1) Paragraphs (1), (4), (5), (6), (8), and (11) 
of section 121(d). 
‘‘(2) Subsection (e). 
‘‘(3) Subsection (f).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of such Code 
is amended by inserting after the item relating to section 
121 the following new item: 
‘‘Sec. 121A. Exclusion of gain from sale of 2 non-principal residences.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property acquired after Decem-
ber 31, 2008. 
Æ 
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