[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 165 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 165

  To amend the Internal Revenue Code of 1986 to adjust the exclusion 
     amount on the gain from the sale of a principal residence for 
                               inflation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 3, 2001

  Mr. Royce 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 adjust the exclusion 
     amount on the gain from the sale of a principal residence for 
                               inflation.

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

SECTION 1. ADJUSTMENT OF EXCLUSION AMOUNT ON GAIN FROM SALE OF 
              PRINCIPAL RESIDENCE FOR INFLATION.

    (a) In General.--Section 121(b) of the Internal Revenue Code of 
1986 (relating to limitations on exclusion of gain from sale of 
principal residence) is amended--
            (1) in paragraph (1) by striking ``$250,000'' and inserting 
        ``the limitation amount'', and
            (2) in paragraph (2) by amending so much of subparagraph 
        (A) as precedes clause (i) to read as follows:
                    ``(A) Increased limitation amount for certain joint 
                returns.--Paragraph (1) shall be applied by 
                substituting `twice the limitation amount' for 
                `limitation amount' if--''.
    (b) Limitation Amount.--Subsection (b) of section 121 of such Code 
(relating to limitations on exclusion of gain from sale of principal 
residence) is amended by adding at the end the following:
            ``(4) Limitation amount.--
                    ``(A) In general.--For purposes of this subsection, 
                the limitation amount is $250,000.
                    ``(B) Inflation adjustment.--
                            ``(i) In general.--In the case of a taxable 
                        year beginning after December 31, 2001, the 
                        $250,000 amount in subparagraph (A) shall be 
                        increased by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                the taxable year begins, determined by 
                                substituting `calendar year 2000' for 
                                `calendar year 1992' in subparagraph 
                                (B) thereof.
                    ``(B) Rounding.--If any amount as adjusted under 
                clause (i) is not a multiple of $100 such amount shall 
                be rounded to the next lowest multiple of $100.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.
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