I
105TH CONGRESS
1ST SESSION
H. R. 200
To amend the Internal Revenue Code of 1986 to provide that gain on
the sale of a principal residence shall be excluded from gross income
without regard to the age of the taxpayer or the amount of the gain.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 7, 1997
Mrs. KELLY 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 provide
that gain on the sale of a principal residence shall be
excluded from gross income without regard to the age
of the taxpayer or the amount of the gain.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Homeowners Relief
Act of 1997’’.
SEC. 2. EXCLUSION OF GAIN FROM SALE OF PRINCIPAL
RESIDENCE.
(a) GENERAL RULE.—The section heading and sub-
section (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 in-
clude gain from the sale or exchange of property if, during
the 7-year period ending on the date of the sale or ex-
change, such property has been owned and used by the
taxpayer as the taxpayer’s principal residence for periods
aggregating 5 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) (as so re-
designated) of such Code is amended to read as fol-
lows:
‘‘(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 7-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 insert-
ing ‘‘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(k)(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 AMENDMENT.—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.
Æ