110 HR 7134 IH: To amend the Internal Revenue Code of 1986 to exclude U.S. House of Representatives 2008-09-26 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 2d Session H. R. 7134 IN THE HOUSE OF REPRESENTATIVES September 26, 2008 Mr. Calvert 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 exclude from gross income the gain from the sale or exchange of certain residences acquired before 2013.

1.

Exclusion from gross income for gain from sale or exchange of certain residences acquired before 2013

(a)

In general

Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to items specifically excluded from gross income) is amended by inserting after section 121 the following new section:

121A.

Exclusion of gain from sale of 2 non-principal residences

(a)

Exclusion

In the case of an individual, gross income shall not include gain from the sale or exchange of a qualified residence owned by the taxpayer. (b)

Limitations

(1)

In general

The amount of gain excluded from gross income under subsection (a) with respect to any sale or exchange shall not exceed $250,000 ($500,000 in the case of a joint return). (2)

Special rule for certain sales by surviving spouses

In the case of a sale or exchange of property by an unmarried individual whose spouse is deceased on the date of such sale, paragraph (1) shall be applied by substituting $500,000 for $250,000 if such sale occurs not later than 2 years after the date of death of such spouse. (3)

Limitation based on number of residences

Subsection (a) shall apply only with respect to 2 qualified residences of the taxpayer. (c)

Qualified residence

For purposes of this section, the term qualified residence means a single family residence which is— (1)owned by the taxpayer, (2)not the principal residence (within the meaning of section 121) of the taxpayer, (3)located in the United States, and (4)acquired by the taxpayer after December 31, 2007, and before January 1, 2013. (d)

Applicable rules

For purposes of this section, rules similar to the following rules of section 121 shall apply: (1)Paragraphs (1), (4), (5), (6), (8), and (11) of section 121(d). (2)Subsection (e). (3)Subsection (f).

. (b)

Clerical amendment

The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 121 the following new item: Sec. 121A. Exclusion of gain from sale of 2 non-principal residences. . (c)

Effective date

The amendments made by this section shall apply to property acquired after December 31, 2007.