Page:United States Statutes at Large Volume 111 Part 1.djvu/865

 PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 841 (14) The item relating to section 121 in the table of sections for part III of subchapter B of chapter 1 is amended to read as follows: "Sec. 121. Exclusion of gain from sale of principal residence.". (15) The table of sections for part III of subchapter O of chapter 1 is amended by striking the item relating to section 1034. (d) EFFECTIVE DATE. — 26 USC 121 note. (1) IN GENERAL. —The amendments made by this section shall apply to sales and exchanges after May 6, 1997. (2) SALES BEFORE DATE OF ENACTMENT.— At the election of the taxpayer, the amendments made by this section shall not apply to any sale or exchange before the date of the enactment of this Act. (3) CERTAIN SALES WITHIN 2 YEARS AFTER DATE OF ENACT- MENT.—Section 121 of the Internal Revenue Code of 1986 (as amended by this section) shall be applied without regard to subsection (c)(2)(B) thereof in the case of any sale or exchange of property during the 2-year period beginning on the date of the enactment of this Act if the taxpayer held such property on the date of the enactment of this Act and fails to meet the ownership and use requirements of subsection (a) thereof with respect to such property. (4) BINDING CONTRACTS. — At the election of the taxpayer, the amendments made by this section shall not apply to a sale or exchange after the date of the enactment of this Act, if— (A) such sale or exchange is pursuant to a contract which was binding on such date, or (B) without regard to such amendments, gain would not be recognized under section 1034 of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of this Act) on such sale or exchange by reason of a new residence acquired on or before such date or with respect to the acquisition of which by the taxpayer a binding contract was in effect on such date. This paragraph shall not apply to any sale or exchange by an individual if the treatment provided by section 877(a)(1) of the Internal Revenue Code of 1986 applies to such individual. SEC. 313. ROLLOVER OF GAIN FROM SALE OF QUALIFIED STOCK. (a) IN GENERAL. — Part III of subchapter O of chapter 1 is amended by adding at the end the following new section: "SEC. 1045. ROLLOVER OF GAIN FROM QUALIFIED SMALL BUSINESS STOCK TO ANOTHER QUALIFIED SMALL BUSINESS STOCK. "(a) NONRECOGNITION OF GAIN.— In the case of any sale of qualified small business stock held by an individual for more than 6 months and with respect to which such individual elects the application of this section, gain from such sale shall be recognized only to the extent that the amount realized on such sale exceeds— "(1) the cost of any qualified small business stock purchased by the taxpayer during the 60-day period beginning on the date of such sale, reduced by "(2) any portion of such cost previously taken into account under this section. 39-194O-97-28:QL3Parti

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