II 109th CONGRESS 2d Session S. 4015 IN THE SENATE OF THE UNITED STATES September 29, 2006 Mr. Cornyn introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to increase the amount of gain excluded from the sale of a principal residence.

1.

Short title

This Act may be cited as the Home Ownership Protection Act of 2006.

2.

Increased exclusion of gain from sale of principal residence

(a)

In general

Section 121(b) of the Internal Revenue Code of 1986 (relating to exclusion of gain from sale of principal residence) is amended— (1)in paragraph (1), by striking $250,000 and inserting $350,000; and (2)in paragraph (2)(A), by striking so much of such paragraph as precedes clause (i) and inserting the following: (A)

$700,000 limitation for certain joint returns

Paragraph (1) shall be applied by substituting $700,000 for 350,000 if— . (b)

Effective date

The amendments made by subsection (a) shall apply to sales and exchanges after December 31, 2006, in taxable years ending after such date.