[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1805 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1805

  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

                              May 13, 1999

Mrs. Lowey (for herself and Mr. Gilman) introduced the following bill; 
         which was referred to the Committee on Ways and Means

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                                 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 of the Internal 
Revenue Code of 1986 (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 121) 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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