Section 1 Short title
This Act may be cited as the “Time to Heal Act”.
Time to Heal Act
A BILL
To amend the Internal Revenue Code of 1986 to give individuals with deceased spouses the same exclusion of gain from the sale of a principal residence as is allowed to married couples, regardless of how much time has passed since such death.
Sec. 2 Special rule for certain home sales by individuals with deceased spouses
In general— Section 121(b)(4) of the Internal Revenue Code of 1986 is amended to read as follows:
“(4) Special rule for certain sales by individuals with deceased spouses—In the case of a sale or exchange of property by an individual whose spouse is deceased on the date of such sale or exchange, paragraph (1) shall be applied by substituting “$500,000” for “$250,000” if—
“(A) the requirements of paragraph (2)(A) were met immediately before such date of death, and
“(B) such individual has not remarried at any time after such date of death and before the close of the taxable year in which such sale occurs.”
Effective date— The amendment made by this section shall apply to sales and exchanges made in taxable years beginning after the date of the enactment of this Act.