‘‘(B) 
DOLLAR
LIMITATION
FOR
EX-
CHANGES OF REAL PROPERTY.— 
‘‘(i) IN
GENERAL.—Paragraph (1) 
shall not apply so much of the gain which, 
but for such paragraph, would be recog-
nized by the taxpayer with respect to real 
property exchanged during the taxable year 
as exceeds $1,000,000. 
‘‘(ii) SPECIAL RULES FOR PARTNER-
SHIPS AND S-CORPORATIONS.—In the case 
of a pass-through entity, clause (i) shall be 
applied at both the entity and at the part-
ner or owner level. 
‘‘(iii) 
AGGREGATION
RULES.—For 
purposes of this subparagraph— 
‘‘(I) FAMILY MEMBERS.—Individ-
uals who are spouses or who bear any 
of the relationships described in sec-
tion 152(d)(2) to each other shall be 
treated as 1 taxpayer (without regard 
to whether spouses file a joint return). 
‘‘(II) CORPORATIONS AND OTHER 
ENTITIES.—All persons treated as a 
single employer under subsection (a) 
or (b) of section 52 or subsection (m) 
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or (o) of section 414 shall be treated 
as 1 person. 
‘‘(iv) ADJUSTMENT FOR INFLATION.— 
In the case of exchanges completed in a 
taxable year beginning after December 31, 
2017, the $1,000,000 amount in clause (i) 
shall be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for the calendar year in which the tax-
able year begins, determined by sub-
stituting ‘calendar year 2016’ for ‘cal-
endar year 1992’ in subparagraph (B) 
thereof. 
If any amount as adjusted under the pre-
ceding sentence is not a multiple of 
$1,000, such amount shall be rounded to 
the nearest multiple of $1,000.’’. 
(b) EXCLUSION OF ART AND COLLECTIBLES.—Sub-
paragraph (A) of section 1031(a)(2) of the Internal Rev-
enue Code of 1986, as amended by subsection (a), is 
amended— 
(1) by striking ‘‘or’’ at the end of clause (v), 
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(2) by striking the period at the end of clause 
(vi) and inserting ‘‘, or’’, and 
(3) by inserting after clause (vi) the following 
new clause: 
‘‘(vii) any collectible (within the mean-
ing of section 408(m), without regard to 
paragraph (3) thereof).’’. 
(c) REGULATORY AUTHORITY.—Subsection (f) of 
section 1031 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new para-
graph: 
‘‘(5) RULES
RELATING
TO
DOLLAR
LIMITA-
TION.—The Secretary shall prescribe such guidance 
as is necessary for applying subsection (a)(2)(B)(i) 
in the case of the exchange of multiple pieces of real 
property by related persons.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Subsection (b) of section 1031 of the Inter-
nal Revenue Code of 1986 is amended— 
(A) by striking ‘‘IN KIND.—If an ex-
change’’ and inserting ‘‘IN KIND.— 
‘‘(1) IN GENERAL.—If an exchange’’, and 
(B) by adding at the end the following new 
paragraph: 
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‘‘(2) 
COORDINATION
WITH
SUBSECTION 
(a)(2)(B).—In the case of an exchange to which 
paragraph (1) applies— 
‘‘(A) paragraph (1) shall be applied before 
the application of subsection (a)(2)(B), and 
‘‘(B) subsection (a)(2)(B) shall be ap-
plied— 
‘‘(i) as if such exchange were within 
the provisions of subsection (a), and 
‘‘(ii) by increasing the basis of the 
property disposed of by the taxpayer in 
such exchange by the amount of any gain 
determined under paragraph (1).’’. 
(2) Subsection (d) of section 1031 of such Code 
is amended by striking ‘‘in the amount of gain’’ and 
inserting ‘‘in the amount of gain (including any gain 
recognized by reason of subsection (a)(2)(B)(i))’’. 
(3) Subsection (i) of section 1031 of such Code 
is amended by striking ‘‘(a)(2)(B)’’ and inserting 
‘‘(a)(2)(A)(ii)’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to exchanges completed in taxable 
years beginning after December 31, 2016. 
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SEC. 7. CONTRIBUTION LIMIT AND INCREASED MINIMUM 
DISTRIBUTIONS FOR CERTAIN RETIREMENT 
PLANS WITH LARGE ACCOUNT BALANCES. 
(a) CONTRIBUTION LIMIT.— 
(1) IN GENERAL.—Subpart A of part I of sub-
chapter D of chapter 1 of the Internal Revenue Code 
of 1986 is amended by adding at the end the fol-
lowing: 
‘‘SEC. 409B. CONTRIBUTION LIMIT ON CERTAIN RETIRE-
MENT PLANS WITH LARGE ACCOUNT BAL-
ANCES. 
‘‘(a) GENERAL RULE.—Notwithstanding any other 
provision of this title, no applicable annual additions shall 
be made by, or on behalf of, an individual for the taxable 
year to any applicable retirement plan to the extent such 
applicable annual additions exceed the excess (if any) of— 
‘‘(1) the applicable dollar amount for the tax-
able year, over 
‘‘(2) the aggregate balances to the credit of the 
individual (whether as a participant, owner, or bene-
ficiary) in all applicable retirement plans (deter-
mined as of the close of the calendar year preceding 
the calendar year in which the taxable year begins). 
‘‘(b) RULES RELATING TO CONTRIBUTION LIMITA-
TIONS.— 
‘‘(1) PLANS OTHER THAN CERTAIN IRAS.— 
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‘‘(A) IN GENERAL.—Except as provided in 
paragraph (2), applicable annual additions in 
excess of the limitation under subsection (a) 
shall be treated for purposes of this title in the 
same manner as excess deferrals are treated 
under section 402(g). 
‘‘(B) SPECIAL RULE FOR AFTER TAX CON-
TRIBUTIONS.—If, without regard to this para-
graph, any portion of an applicable annual ad-
dition to which subparagraph (A) applies with 
respect to an individual is not excludable from 
gross income of the individual (or no deduction 
is allowable to the individual with respect to 
such portion), such portion shall not be— 
‘‘(i) includible in gross income by rea-
son of the application of subparagraph (A), 
or 
‘‘(ii) taken into account in computing 
the investment in the contract for purposes 
of section 72. 
‘‘(2) SPECIAL RULE FOR IRAS.— 
‘‘(A) IN GENERAL.—In the case of an ap-
plicable retirement plan which is an individual 
retirement plan (other than a simplified em-
ployee pension under section 408(k) or a simple 
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