‘(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, 2008, and before January 1, 2012.
‘(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:
(c) Effective Date- The amendments made by this section shall apply to property acquired after December 31, 2008.
U.S. Congress - Text of H.R.755 as Introduced in House To amend the Internal Revenue Code of 1986 to exclude from gross income the gain from t...
