[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 198 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 198

To amend the Internal Revenue Code of 1986 to provide that the one-time 
   exclusion of gain from sale of a principal residence shall not be 
precluded because the taxpayer's spouse, before becoming married to the 
                    taxpayer, elected the exclusion.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 26 (legislative day, January 5), 1993

   Mr. Helms introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide that the one-time 
   exclusion of gain from sale of a principal residence shall not be 
precluded because the taxpayer's spouse, before becoming married to the 
                    taxpayer, elected the exclusion.

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

SECTION 1. ELECTION BY TAXPAYER OF ONE-TIME EXCLUSION OF GAIN ON SALE 
              OF PRINCIPAL RESIDENCE ALLOWED EVEN IF TAXPAYER'S SPOUSE 
              ELECTED THE EXCLUSION BEFORE BECOMING MARRIED TO 
              TAXPAYER.

    (a) In General.--Paragraph (2) of section 121(b) 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 to read as follows:
            ``(2) Application to only one sale or exchange.--Subsection 
        (a) shall not apply to any sale or exchange if--
                    ``(A) in the case of an unmarried individual, an 
                election by such individual under subsection (a) with 
                respect to any other sale or exchange is in effect, or
                    ``(B) in the case of married individuals, an 
                election by each such individual under subsection (a) 
                with respect to any other sale or exchange is in 
                effect.''.
    (b) Technical Amendment.--Paragraph (2) of section 121(d) of such 
Code is amended to read as follows:
            ``(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 5-year period ending on the 
        date of the sale or exchange) satisfied the holding and use 
        requirements of subsection (a)(2) with respect to such 
        property, then such individual shall be treated as satisfying 
        the holding and use requirements of subsection (a)(2) with 
        respect to such property.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to sales and exchanges after the date of the enactment of this 
Act.

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