[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 199 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 199

   To amend the Internal Revenue Code of 1986 to allow the one-time 
exclusion on gain from sale of a principal residence to be taken before 
   age 55 if the taxpayer or a family member suffers a catastrophic 
                                illness.


_______________________________________________________________________


                   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 allow the one-time 
exclusion on gain from sale of a principal residence to be taken before 
   age 55 if the taxpayer or a family member suffers a catastrophic 
                                illness.

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

SECTION 1. EXCLUSION ON GAIN FROM HOME SALE TO APPLY IF TAXPAYER OR 
              FAMILY MEMBER SUFFERS CATASTROPHIC ILLNESS.

    (a) In General.--Paragraph (1) of section 121(a) 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:
            ``(1) either--
                    ``(A) the taxpayer has attained the age of 55 
                before the date of such sale or exchange, or
                    ``(B) as of the date of such sale or exchange, the 
                taxpayer, or a parent, spouse, or child of the 
                taxpayer--
                            ``(i) is physically or mentally incapable 
                        of self-care, and
                            ``(ii) has had such condition, or has been 
                        certified by a medical practitioner licensed 
                        under State law as expecting to have such 
                        condition, for a period of at least 6 months, 
                        and''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 121(d) of the Internal Revenue 
        Code of 1986 is amended by inserting ``or condition'' after 
        ``age'' each place it appears.
            (2)(A) The heading for section 121 of such Code is amended 
        by striking ``who has attained age 55'' and inserting ``in 
        certain cases''.
            (B) The item relating to section 121 in the table of 
        sections for part III of subchapter B of chapter 1 of such Code 
        is amended by striking ``who has attained age 55'' and 
        inserting ``in certain cases''.
            (3) Each of the following provisions of such Code are 
        amended by striking ``who has attained age 55'' and inserting 
        ``in certain cases'':
                    (A) Section 1033(h)(3).
                    (B) Section 1034(l).
                    (C) Section 1038(e)(1)(A).
                    (D) Section 1250(d)(7)(B).
                    (E) Section 6012(c).
    (c) Effective Date.--The amendments made by this section shall 
apply to sales or exchanges after the date of the enactment of this Act 
in taxable years ending after such date.

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