[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 138 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                 S. 138

 To amend the Internal Revenue Code of 1986 to apply the joint return 
 limitation for capital gains exclusion to certain post-marriage sales 
             of principal residences by surviving spouses.


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                   IN THE SENATE OF THE UNITED STATES

                            January 4, 2007

  Mr. Schumer 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 apply the joint return 
 limitation for capital gains exclusion to certain post-marriage sales 
             of principal residences by surviving spouses.

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

SECTION 1. APPLICATION OF JOINT RETURN LIMITATION FOR CAPITAL GAINS 
              EXCLUSION TO CERTAIN POST-MARRIAGE SALES OF PRINCIPAL 
              RESIDENCES BY SURVIVING SPOUSES.

    (a) Sale Within 2 Years of Spouse's Death.--Section 121(b) of the 
Internal Revenue Code of 1986 (relating to limitations) is amended by 
adding at the end the following new paragraph:
            ``(4) 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 and the 
        requirements of paragraph (2)(A) were met immediately before 
        such date of death.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to sales or exchanges after December 31, 2006.
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