[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1204 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1204

To amend the Internal Revenue Code of 1986 to provide that the sale of 
    a life estate or a remainder interest in a principal residence 
  qualifies for the one-time exclusion of gain on sale of a principal 
                               residence.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 20, 1997

 Mr. Thomas (for himself, Mr. English of Pennsylvania, Mr. Stark, and 
 Mr. Wicker) 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 the sale of 
    a life estate or a remainder interest in a principal residence 
  qualifies for the one-time exclusion of gain on 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. SALES OF LIFE ESTATES AND REMAINDER INTERESTS TO QUALIFY FOR 
              ONE-TIME EXCLUSION OF GAIN ON SALE OF PRINCIPAL RESIDENCE 
              BY INDIVIDUALS WHO HAVE ATTAINED AGE 55.

    (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) Sales of life estates and remainder interests.--For 
        purposes of this section--
                    ``(A) In general.--In the case of property with 
                respect to which the taxpayer satisfies the age, 
                holding, and use requirements of subsection (a), 
                subject to subsection (b)(2), an election may be made 
                under subsection (a) with respect to the sale or 
                exchange of a life estate or a remainder interest in 
                such property.
                    ``(B) Exception for sales to related parties.--
                Subparagraph (A) shall not apply to any sale to, or 
                exchange with, any person who bears a relationship to 
                the taxpayer which is described in section 267(b) or 
                707(b).''
    (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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