Section 1 Short title
This Act may be cited as the “Making Homeownership Affordable Again Act”.
Making Homeownership Affordable Again Act
A BILL
To amend the Internal Revenue Code of 1986 to exclude all gain from the sale of a principal residence or any residence which is sold to a first-time homebuyer, and for other purposes.
Sec. 2 Full exclusion of gain from sale of principal residence or residence sold to first-time homebuyer
Elimination of dollar limitations on exclusion of gain—
by striking paragraphs (1), (2), and (4), and
by redesignating paragraphs (3) and (5) as paragraphs (1) and (2), respectively.
Conforming amendments—
Section 121(c) of such Code is amended—
in paragraph (1), by striking “, and subsection (b)(3)” and all that follows through “2 years” and inserting “, and subsection (b)(1), shall not apply”, and
in paragraph (2)(A)(ii), by striking “subsection (b)(3)” and inserting “subsection (b)(1)”.
Section 121(d) of such Code is amended—
in paragraph (9)(A), by striking “in subsections (a) and (c)(1)(B)” and inserting “in subsection (a)”, and
in paragraph (12)(A), by striking “in subsections (a) and (c)(1)(B)” and inserting “in subsection (a)”.
Allowance of exclusion of gain from sales to first-Time homebuyers—
In general— Section 121(c)(2)(B) of such Code is amended—
by striking “exchange is by reason of” and inserting
“(i) by reason of”
by striking “unforeseen circumstances.” and inserting “unforeseen circumstances, or”, and
by adding at the end the following:
“(ii) to a first-time homebuyer.”
First-time homebuyer— Section 121(c) of such Code, as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph:
“(3) First-time homebuyer—For purposes of this subsection, the term first-time homebuyer means any individual if such individual (and if married, such individual’s spouse) had no present ownership interest in a principal residence during the 3-year period ending on the date of the sale or exchange of the property to which this subsection applies.”
Effective date— The amendments made by this section shall apply to sales and exchanges made after the date of the enactment of this Act.