[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 535 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 535

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


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                    IN THE HOUSE OF REPRESENTATIVES

                            February 4, 1997

   Mrs. Lowey (for herself, Mr. Gilman, Mr. Shays, Mr. Hinchey, Mr. 
 Bereuter, Mr. Frost, Ms. DeLauro, Mr. Towns, Ms. Norton, Mr. Davis of 
 Virginia, Mr. Skeen, Mr. Filner, Mr. Green, Mr. McHugh, Mr. Wynn, Mr. 
Walsh, Mr. English of Pennsylvania, Mr. Barcia, Mrs. Kelly, Mr. Taylor 
of North Carolina, Ms. Christian-Green, and Mr. Rohrabacher) 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 or exchange 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.--Subsection (c) of section 165 (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 new paragraph:
            ``(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 amendment made by subsection (a) 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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