[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5327 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 5327

  To amend the Internal Revenue Code of 1986 to provide an increased 
  exclusion of gain from the sale of a principal residence by certain 
                          widows and widowers.


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                    IN THE HOUSE OF REPRESENTATIVES

                            October 8, 2004

  Mrs. Lowey 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 an increased 
  exclusion of gain from the sale of a principal residence by certain 
                          widows and widowers.

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

SECTION 1. INCREASED EXCLUSION ON SALE OF PRINCIPAL RESIDENCE BY 
              CERTAIN WIDOWS AND WIDOWERS.

    (a) In General.--Section 121(b) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(4) Special rules for widows and widowers.--In the case 
        of an unmarried individual who was married and whose marriage 
        ceased by reason of the death of such individual's spouse, 
        paragraph (1) shall be applied by substituting `$500,000' for 
        `$250,000' if--
                    ``(A) such property was owned by such individual or 
                such individual's spouse immediately before the death 
                of such spouse,
                    ``(B) the requirements of paragraphs (2)(A) and (3) 
                would have been met if such property had been sold 
                immediately before the death of such spouse, and
                    ``(C) the sale or exchange of such property is 
                during the 1-year period beginning on the date of the 
                death of such spouse.''.
    (b) Conforming Amendment.--Section 121(c)(1) of such Code is 
amended by striking ``or (2)'' and inserting ``, (2), or (4)''.
    (c) Effective Date.--The amendments 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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