[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5021 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 5021

     To amend the Internal Revenue Code of 1986 to provide for the 
  nonrecognition of gain on the sale of a principal residence if the 
                        taxpayer is unemployed.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            August 23, 1994

  Mr. Lazio 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 for the 
  nonrecognition of gain on the sale of a principal residence if the 
                        taxpayer is unemployed.

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

SECTION 1. NONRECOGNITION OF GAIN ON SALE OF PRINCIPAL RESIDENCE IF 
              TAXPAYER IS UNEMPLOYED.

    (a) In General.--Subsection (d) of section 121 of the Internal 
Revenue Code of 1986 (relating to one-time exclusion of gain from sale 
of principal residence by individual who has attained age 55) is 
amended by adding at the end the following new paragraph:
            ``(10) Special rules for residence sold during period of 
        unemployment.--
                    ``(A) In general.--Subsection (a)(1) shall not 
                apply to the sale or exchange of any residence during a 
                period while the taxpayer or the taxpayer's spouse is 
                unemployed.
                    ``(B) Determination of unemployment.--For purposes 
                of subparagraph (A), an individual shall be treated as 
                unemployed during any period--
                            ``(i) for which such individual is 
                        receiving unemployment compensation (as defined 
                        in section 85(b)), or
                            ``(ii) for which such individual would have 
                        been entitled to receive unemployment 
                        compensation (as so defined) but for--
                                    ``(I) the termination of the period 
                                during which such compensation was 
                                payable, or
                                    ``(II) an exhaustion of such 
                                individual's rights to such 
                                compensation.
                    ``(C) Reduction in maximum exclusion.--In the case 
                of a sale or exchange of any residence to which 
                subparagraph (A) applies, the amount of the gain 
                excluded from gross income under subsection (a) shall 
                not exceed the excess (if any) of--
                            ``(i) the applicable dollar amount 
                        contained in subsection (b)(1), over
                            ``(ii) the aggregate amount of gain 
                        excluded from gross income under subsection (a) 
                        with respect to all prior sales and exchanges 
                        (other than a sale or exchange which is not 
                        taken into account by reason of subsection 
                        (b)(3)).
                    ``(D) Additional election.--Any election under this 
                section with respect to any residence to which 
                subparagraph (A) applies shall not be taken into 
                account in determining whether any other election may 
                be made under this section.''
    (b) Effective Date.--The amendment made by this section shall apply 
to sales and exchanges after the date of the enactment of this Act in 
taxable years ending after such date.
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