[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2851 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2851

To amend the Internal Revenue Code of 1986 to exclude certain gains on 
      single-family residential rental property from gross income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2009

    Mr. Brady of Texas (for himself, Mr. Sessions, and Mr. Austria) 
 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 certain gains on 
      single-family residential rental property from gross income.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Neighborhood Investment Act of 
2009''.

SEC. 2. CERTAIN GAINS ON SINGLE-FAMILY RESIDENTIAL RENTAL PROPERTY 
              EXCLUDED FROM GROSS INCOME.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139C the following new section:

``SEC. 139D. CERTAIN GAINS ON SINGLE-FAMILY RESIDENTIAL RENTAL 
              PROPERTY.

    ``(a) In General.--Gross income shall not include any gain from the 
sale or exchange of a qualified single-family residential rental 
property.
    ``(b) Limitation.--The amount of gain excluded from gross income 
under subsection (a) with respect to any sale or exchange shall not 
exceed $250,000.
    ``(c) Qualified Single-Family Residential Rental Property.--For 
purposes of this section--
            ``(1) In general.--The term `qualified property' means any 
        real property located in the United States which--
                    ``(A) was acquired by the taxpayer by purchase (as 
                defined in section 179(d)(2)) during the period 
                beginning on the date of the enactment of this section 
                and ending on June 30, 2010,
                    ``(B) was held by the taxpayer for 2 years or more, 
                and
                    ``(C) was rented as a single dwelling unit on a 
                regular basis during 2 of the taxable years in the 5 
                taxable year period ending with the taxable year in 
                which the property was sold or exchanged.
            ``(2) Regular basis.--For purposes of paragraph (1)(C), 
        property shall not be treated as rented on a regular basis 
        during any taxable year unless--
                    ``(A) such property is rented on the basis of 
                months or longer periods, and
                    ``(B) such property is rented for not less than 6 
                months of such year.
    ``(d) Exception for Nonresident Alien Individuals.--No credit shall 
be allowed under subsection (a) to any taxpayer if such taxpayer is a 
nonresident alien individual.''.
    (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 139C the following new item:

``Sec. 139D. Certain gains on single-family residential rental 
                            property.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property acquired after the date of the enactment of this Act.
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