Title: Senior Housing IRA Act of 2017
Policy area: Taxation

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.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3366 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 3366

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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 24, 2017

  Mr. Gottheimer (for himself and Mr. Katko) 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 allow, in certain cases, 
an increase in the limitation on the exclusion for gains from a sale or 
                   exchange of a principal residence.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Senior Housing Improvement and 
Retirement Accounts Act of 2017'' or the ``Senior Housing IRA Act of 
2017''.

SEC. 2. INCREASE IN EXCLUSION LIMITATION FOR GAINS FROM CERTAIN SALES 
              OF PRINCIPAL RESIDENCES.

    (a) In General.--Subsection (b) of section 121 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(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' before `$250,000' and by inserting `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)' after `$250,000'.
                    ``(B) Qualified individual.--The term `qualified 
                individual' means, with respect to a sale or exchange 
                of property to which subsection (a) applies, an 
                individual who--
                            ``(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.
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