Section 1 Short title
This Act may be cited as the “Senior Housing Improvement and Retirement Accounts Act of 2017” or the “Senior Housing IRA Act of 2017”.
Senior Housing Improvement and Retirement Accounts Act of 2017
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.
Sec. 2 Increase in exclusion limitation for gains from certain sales of principal residences
In general— Subsection (b) of section 121 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
“(6) Special rules for certain taxpayers
“(A) In general—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 “$250,000”.
“(B) Qualified individual—The term qualified individual means, with respect to a sale or exchange of property to which subsection (a) applies, an individual who—
“(i) has attained the age of 55 before the date of such sale or exchange,
“(ii) has owned and used the property as such individual’s principal residence for a period of not less than 20 years, and
“(iii) 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—
In general— Subsection (c) of section 408A of such Code is amended by adding at the end the following new paragraph:
“(8) Proceeds from sales of certain residences treated as rollover contributions
“(A) In general—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.
“(B) Limitation—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—
“(i) the gain from the sale or exchange described in subparagraph (A), over
“(ii) 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.”
Effective date— 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.