Page:United States Statutes at Large Volume 92 Part 3.djvu/238

 92 STAT. 2870 26 USC 121.

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26 USC 1033.

PUBLIC LAW 95-600—NOV. 6, 1978 (1) Paragraph (2) of section 121(d) is amended by striking out "8-year period" and inserting in lieu thereof "5-year period". (2) Paragraph (5) of section 121(d) is amended— (A) by striking out "8-year period" and inserting in lieu thereof "5-year period", and (B) by striking out "5 years" and inserting in lieu thereof "3 years". (3) The table of sections for part III of subchapter B of chapter 1 is amended by striking out the item relating to section 121 and inserting in lieu thereof the following:

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"Sec. 121. One-time exclusion of gain from sale of principal residence by individual who has attained age 55."

(4) Paragraph (3) of section 1033(g) (relating to cross references) is amended to read as follows: "(3) For one-time exclusion from gross income of gain from involuntary conversion of principal residence by individual who has attained age 55, see section 121."

26 USC 1034.

(5) Subsection (k) of section 1034 (relating to cross references) is amended to read as follows: "(k) CROSS REFERENCE.— "For one-time exclusion from gross income of gain from sale of principal residence by individual who has attained age 55, see section 121."

26 USC 1038.

26 USC 1250.

26 USC 6012.

26 USC 121

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26 USC 1034.

(6) Section 1038(e)(1)(A) is amended by striking out "relating to gain from sale or exchange of residence of an individual who has attained age 65" and inserting in lieu thereof "relating to onetime exclusion of gain from sale of principal residence by individual who has attained age 55". (7) Section 1250(d)(7)(B) is amended by striking out "relating to gains from sale or exchange of residence of individual who has attained the age of 65" and inserting in lieu thereof "relating to one-time exclusion of gain from sale of principal residence by individual who has attained age 55". (8) Section 6012(c) is amended by striking out "relating to sale of residence by individual who has attained age 65" and inserting in lieu thereof "relating to one-time exclusion of gain from sale of principal residence by individual who has attained age 55". (d) EFFECTIVE DATE.—

(1) IN GENERAL.—The amendments made by this section shall apply to sales or exchanges after July 26, 1978, in taxable years ending after such date. (2) TRANSITIONAL RULE,—In the case of a sale or exchange of a residence before July 26, 1981, a taxpayer who has attained age 65 on the date of such sale or exchange may elect to have section 121 of the Internal Revenue Code of 1954 applied by substituting "8-year period" for "5-year period" and "5 years" for "3 years" in subsections (a), (d)(2), and (d)(5) of such section. SEC. 405. WAIVER OF CERTAIN 18-MONTH RULES OF SECTION 1034 WHEN SALE OF RESIDENCE IS CONNECTED WITH COMMENCING WORK AT NEW PLACE. (a) IN GENERAL.—Subsection (d) of section 1034 (relating to sale or exchange of residence) is amended to read as follows: "(d) LIMITATION.—

"(1) IN GENERAL.—Subsection (a) shall not apply with respect to the sale of the taxpayer's residence if within 18 months before the date of such sale the taxpayer sold at a gain other property

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