[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1926 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1926

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


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                    IN THE HOUSE OF REPRESENTATIVES

                              May 21, 2001

 Mr. McInnis 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 the capital loss 
   deduction with respect to the sale or exchange of an individual's 
                          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 December 31, 2001, in taxable years 
ending after such date.
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