[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1026 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1026

  To amend the Internal Revenue Code of 1986 to allow a capital loss 
      deduction with respect to the sale of a principal residence.


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 11, 1997

Mr. Packard (for himself, Mrs. Kennelly of Connecticut, Mr. Pappas, Mr. 
 Foley, Mr. Baker, Mr. Barcia, Mr. Filner, Mrs. Kelly, Mr. McKeon, Mr. 
 Sensenbrenner, Mr. Shays, and Mr. Weldon of Pennsylvania) 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 a capital loss 
      deduction with respect to the sale 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. CAPITAL LOSS DEDUCTION ALLOWED WITH RESPECT TO SALE OR 
              EXCHANGE OF PRINCIPAL RESIDENCE.

    (a) In General.--Section 165(c) (relating to limitation on losses 
of individuals) is amended by striking ``and'' at the end of paragraph 
(2), by striking the period at the end of paragraph (3) and inserting 
``; and'', and by adding at the end the following:
            ``(4) losses arising from the sale or exchange of the 
        principal residence (within the meaning of section 1034) of the 
        taxpayer.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to sales and exchanges after December 31, 1996, in taxable years 
ending after such date.
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