,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #heia  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,april #cj1 #bjbf,mr4 
,massie 7= himself1 ,ms4 ,p]ez1 ,mr4    
,roy1 ,mr4 ,davidson1 ,mr4 ,bur*ett1    
,ms4 ,boeb]t1 ,ms4 ,mace1 ,mr4 ,edw>ds1 
,mr4 ,burlison1 ,mr4 ,coll9s1 & ,ms4    
,f$or*ak7 introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,ways &      
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to provide an     
exclusion f gross income ( ga9 f ! sale 
( qualifi$ f>m prop]ty to qualifi$      
family memb]s4  #a4 ,%ort title ,?is    
,act may be cit$ z ! ,no ,capital ,ga9s 
,tax on ,family ,f>ms ,act4  #b4        
,exclusion f gross income ( ga9 f sale (
 qualifi$ f>m prop]ty to qualifi$ family
 memb]s  7a7 ,9 g5]al ,"p ,,iii (       
sub*apt] ,b ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #aba ! foll[+ new section3
  #aba;,a4 ,exclusion ( ga9 f sale (    
qualifi$ f>m prop]ty to qualifi$ family 
memb]s  7a7 ,exclusion ,gross income    

%all n include ga9 f ! sale or ex*ange (
 qualifi$ f>m prop]ty to a qualifi$     
family memb] ( ! taxpay]4  7b7          
,def9itions ,= purposes ( ?is section-- 
7#a7 ,qualifi$ f>m prop]ty ,! t]m       
qualifi$ f>m prop]ty means any int]e/ 9 
real prop]ty locat$ 9 ! ,unit$ ,/ates   
if1 dur+ p]iods aggregat+ #b ye>s or m  
dur+ ! #h-ye> p]iod end+ on ! date ( !  
sale or ex*ange ( su* real prop]ty1 su* 
real prop]ty 0 own$ & us$ z a f>m = f>m+
 purposes 7)9 ! mean+ ( section         
#bjcb;,a7e77 by ! taxpay]4  7#b7        
,qualifi$ family memb] ,! t]m qualifi$  
family memb] means1 ) respect to any    
taxpay]-- 7,a7 ! sp\se ( su* taxpay]1   
7,b7 a l9eal desc5dant ( su* taxpay]1 ( 
su* taxpay]'s sp\se1 ( a p>5t ( su*     
taxpay]1 or ( a p>5t ( su* taxpay]'s    
sp\se1 or  7,c7 ! sp\se ( any l9eal     
desc5dant describ$ 9 subp>agraph 7,b74  
,= purposes ( ! prec$+ s5t5ce1 a legally
 adopt$ *ild ( an individual %all be    
treat$ z ! *ild ( su* individual by     
blood4  7c7 ,special rules  7#a7 ,basis 

( qualifi$ f>m prop]ty ,= purposes ( ?is
 section-- 7,a7 ,9 g5]al ,! basis (     
qualifi$ f>m prop]ty 9 ! h&s ( a        
qualifi$ family memb] foll[+ a sale or  
ex*ange describ$ 9 subsection 7a7 %all  
be ! adju/$ basis ( su* qualifi$ f>m    
prop]ty 9 ! h&s ( ! taxpay] imm$iately  
be=e su* sale or ex*ange4  7,b7         
,increas$ basis foll[+ #aj-ye> hold+    
p]iod ,if1 foll[+ a sale or ex*ange     
describ$ 9 subsection 7a71 ! qualifi$   
f>m prop]ty is n sold1 ex*ang$1 or      
o!rwise dispos$ ( = ! #aj-ye> p]iod     
beg9n+ on ! date ( su* sale or ex*ange1 
! basis ( su* qualifi$ f>m prop]ty 9 !  
h&s ( ! qualifi$ family memb] 7z ( !    
fir/ day foll[+ su* #aj-ye> p]iod7 %all 
be increas$ by an am\nt equal to !      
excess 7if any7 (-- 7i7 ! fair m>ket    
value ( su* qualifi$ f>m prop]ty 7z ( ! 
date ( su* sale or ex*ange71 ov]  7ii7 !
 basis ( su* qualifi$ f>m prop]ty 9 !   
h&s ( su* qualifi$ family memb] 7z      
o!rwise det]m9$ "u subp>agraph 7,a774   
7#b7 ,election to h section n apply     

,rules simil> to ! rules ( section      
#aba7;f7 %all apply = purposes ( ?is    
section4  7d7 ,regulations ,! ,secret>y 
%all prescribe su* regulations or o!r   
guidance z may be necess>y or           
appropriate to c>ry out ! purposes ( ?is
 section1 includ+ ) respect to !        
application ( subsection 7c77#a77;,b7 9 
cases o!r ?an :]e ! entire int]e/ 9     
qualifi$ f>m prop]ty is n sold1 ex*ang$1
 or o!rwise dispos$ ( = ! applicable    
#aj-ye> p]iod4  4  7b7 ,cl]ical am5dm5t 
,! table ( sections = "p ,,iii (        
sub*apt] ,b ( *apt] #a ( su* ,code is   
am5d$ by ins]t+ aft] ! item relat+ to   
section #aba ! foll[+ new item3  ,sec4  
#aba;,a4 ,exclusion ( ga9 f sale (      
qualifi$ f>m prop]ty to qualifi$ family 
memb]s4  4  7c7 ,effective date ,!      
am5dm5ts made by ?is section %all apply 
to sales or ex*anges aft] ! date ( !    
enactm5t ( ?is ,act4