1.Exclusion of gain from sale
of non-principal residences
(a)Part III of
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 121 the following new section:
121A.Exclusion of
gain from sale of non-principal residence
(a)Gross income shall
not include gain from the sale or exchange of property if—
(1)such property is
acquired during the 1-year period beginning on the date of the enactment of
this section,
(2)such property is
held by the taxpayer and used as a dwelling unit for a period of not less than
2 years, and
(3)such property is
located in a high foreclosure rate area.
(b)The
amount of gain excluded from gross income under subsection (a) with respect to
any sale or exchange shall not exceed $50,000 ($100,000 in the case of a joint
return).
(c)High foreclosure
rate areaFor purposes of this section, the term high
foreclosure rate area
means the 200 political subdivisions determined
by the Secretary of the Treasury to have the highest rates of foreclosures,
except that such 200 political subdivisions shall include at least 1 political
subdivision of each State.
(d)Application of
certain rulesRules similar to the rules of subsections (d), (e),
and (f) of section 121 shall apply for purposes of this
section.
.
(b)Publication of
list of high foreclosure areasNot later than 60 days after the
date of the enactment of this Act, the Secretary of the Treasury (or the
Secretary’s designee) shall publish the list of the 200 political subdivisions
determined to have the highest foreclosure rates under section 121A(c) of the
Internal Revenue Code of 1986, as added by this section.
(c)The table of
sections for part III of subchapter B of chapter 1 of such Code is amended by
inserting after the time relating to section 121 the following new item:
Sec. 121A. Exclusion of gain from sale of non-principal
residence.
.