[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5002 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 5002

  To amend the Internal Revenue Code of 1986 to provide that disabled 
 individuals shall be eligible for the one-time exclusion of gain from 
                      sale of principal residence.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            August 19, 1994

 Mrs. Johnson of Connecticut 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 disabled 
 individuals shall be eligible for the one-time exclusion of gain from 
                      sale of principal residence.

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

SECTION 1. DISABLED INDIVIDUALS ELIGIBLE FOR ONE-TIME EXCLUSION OF GAIN 
              FROM SALE OF PRINCIPAL RESIDENCE.

    (a) General Rule.--Paragraph (1) of section 121(a) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(1) the taxpayer has attained the age of 55 before the 
        date of such sale or exchange or the taxpayer is disabled as of 
        such date, and''.
    (b) Disability Defined.--Subsection (d) of section 121 of such Code 
is amended by adding at the end thereof the following new paragraph:
            ``(10) Disabled individual.--For purposes of this section, 
        an individual is disabled if such individual--
                    ``(A) has a disability meeting the requirements of 
                section 216(i)(1) of the Social Security Act, or
                    ``(B) has a service-connected disability rated as 
                total by the Secretary of Veterans Affairs under 
                chapter 11 of title 38, United States Code.''
    (c) Conforming Amendments.--
            (1) Paragraph (1) of section 121(d) of such Code is amended 
        by striking ``the age, holding, and use requirements'' each 
        place it appears and inserting ``the requirements''.
            (2) The section heading for section 121 of such Code is 
        amended by inserting ``or is disabled'' before the period at 
        the end thereof.
            (3) The table of sections for part III of subchapter B of 
        chapter 1 of such Code is amended by inserting ``or is 
        disabled'' before the period at the end of the item relating to 
        section 121.
            (4) Sections 1033(h)(3), 1034(l), 1038(e)(1)(A), and 
        6012(c) of such Code are each amended by inserting ``or is 
        disabled'' after ``age 55''.
            (5) Subparagraph (B) of section 1250(d)(7) of such Code is 
        amended--
                    (A) by striking ``the age and ownership 
                requirements'' and inserting ``the age or disability 
                requirements, and the ownership requirements,'', and
                    (B) by inserting ``or is disabled'' after ``age 
                55''.
    (d) Effective Date.--The amendments made by this section shall 
apply to sales or exchanges after the date of the enactment of this 
Act.
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