Senior Housing IRA Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 5726 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. IN THE HOUSE OF REPRESENTATIVES JANUARY 30, 2020 Mr. GOTTHEIMER (for himself and Mr. KATKO) 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 allow, in certain cases, an increase in the limitation on the exclusion for gains from a sale or exchange of a principal residence. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Senior Housing Im- 4 provement and Retirement Accounts Act of 2020’’ or the 5 ‘‘Senior Housing IRA Act of 2020’’. 6 VerDate Sep 11 2014 02:13 Jan 31, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5726.IH H5726 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 5726 IH SEC. 2. INCREASE IN EXCLUSION LIMITATION FOR GAINS 1 FROM CERTAIN SALES OF PRINCIPAL RESI- 2 DENCES. 3 (a) IN GENERAL.—Subsection (b) of section 121 of 4 the Internal Revenue Code of 1986 is amended by adding 5 at the end the following new paragraph: 6 ‘‘(6) SPECIAL RULES FOR CERTAIN TAX- 7 PAYERS.— 8 ‘‘(A) IN GENERAL.—In the case of a quali- 9 fied individual, paragraph (1) shall be applied 10 by inserting ‘the sum of’ before ‘$250,000’ and 11 by inserting ‘and the amount treated under 12 paragraph (8) of section 408A(c) as a qualified 13 rollover contribution to a Roth IRA of the 14 qualified individual referred to in paragraph 15 (6)(A)’ after ‘$250,000’. 16 ‘‘(B) QUALIFIED INDIVIDUAL.—The term 17 ‘qualified individual’ means, with respect to a 18 sale or exchange of property to which sub- 19 section (a) applies, an individual who— 20 ‘‘(i) has attained the age of 55 before 21 the date of such sale or exchange, 22 ‘‘(ii) has owned and used the property 23 as such individual’s principal residence for 24 a period of not less than 20 years, and 25 VerDate Sep 11 2014 02:13 Jan 31, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5726.IH H5726 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 5726 IH ‘‘(iii) has not previously elected to 1 treat a contribution to a Roth IRA as a 2 qualified rollover contribution under para- 3 graph (8) of section 408A(c). 4 In the case of a joint return, ownership and use 5 of the property by an individual’s spouse shall 6 be taken into account as ownership and use by 7 such individual.’’. 8 (b) REMOVING ROTH IRA CONTRIBUTION LIMITS.— 9 (1) IN GENERAL.—Subsection (c) of section 10 408A of such Code is amended by adding at the end 11 the following new paragraph: 12 ‘‘(8) PROCEEDS FROM SALES OF CERTAIN RESI- 13 DENCES TREATED AS ROLLOVER CONTRIBUTIONS.— 14 ‘‘(A) IN GENERAL.—In the case of a quali- 15 fied individual (as defined in subsection 16 (b)(6)(B) of section 121), a contribution to a 17 Roth IRA of gain from a sale or exchange of 18 property described in subsection (a) of such sec- 19 tion may be treated, at the election of such tax- 20 payer, as a qualified rollover contribution from 21 a Roth IRA for purposes of this section. 22 ‘‘(B) LIMITATION.—The amount of gain 23 that may be treated as a qualified rollover con- 24 VerDate Sep 11 2014 02:13 Jan 31, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5726.IH H5726 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 5726 IH tribution under subparagraph (A) for a tax- 1 payer may not exceed the excess of— 2 ‘‘(i) the gain from the sale or ex- 3 change described in subparagraph (A), 4 over 5 ‘‘(ii) the amount that would (without 6 regard to paragraph (6) of subsection (b) 7 of such section) be excluded from gross in- 8 come under subsection (a) of section 9 121.’’. 10 (c) EFFECTIVE DATE.—The amendment made by 11 this section shall apply with respect to sales or exchanges 12 of property in taxable years beginning after the date of 13 the enactment of this Act. 14 Æ VerDate Sep 11 2014 02:13 Jan 31, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H5726.IH H5726 kjohnson on DSK79L0C42PROD with BILLS