H. R. 3366
IN THE HOUSE OF REPRESENTATIVES
July 24, 2017
Mr. Gottheimer (for himself and Mr. Katko) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to allow, in certain cases, an increase in the limitation on the exclusion for gains from a sale or exchange of a principal residence.
This Act may be cited as the
Senior Housing Improvement and Retirement Accounts Act of 2017 or the
Senior Housing IRA Act of 2017.
Increase in exclusion limitation for gains from certain sales of principal residences
Subsection (b) of section 121 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
Special rules for certain taxpayers
In the case of a qualified individual, paragraph (1) shall be applied by inserting
the sum of before
$250,000 and by inserting
and the amount treated under paragraph (8) of section 408A(c) as a qualified rollover contribution to a Roth IRA of the qualified individual referred to in paragraph (6)(A) after
The term qualified individual means, with respect to a sale or exchange of property to which subsection (a) applies, an individual who—
has attained the age of 55 before the date of such sale or exchange,
has owned and used the property as such individual’s principal residence for a period of not less than 20 years, and
has not previously elected to treat a contribution to a Roth IRA as a qualified rollover contribution under paragraph (8) of section 408A(c).
Removing Roth IRA contribution limits
Subsection (c) of section 408A of such Code is amended by adding at the end the following new paragraph:
Proceeds from sales of certain residences treated as rollover contributions
In the case of a qualified individual (as defined in subsection (b)(6)(B) of section 121), a contribution to a Roth IRA of gain from a sale or exchange of property described in subsection (a) of such section may be treated, at the election of such taxpayer, as a qualified rollover contribution from a Roth IRA for purposes of this section.
The amount of gain that may be treated as a qualified rollover contribution under subparagraph (A) for a taxpayer may not exceed the excess of—
the gain from the sale or exchange described in subparagraph (A), over
the amount that would (without regard to paragraph (6) of subsection (b) of such section) be excluded from gross income under subsection (a) of section 121.
The amendment made by this section shall apply with respect to sales or exchanges of property in taxable years beginning after the date of the enactment of this Act.