A bill to provide for a special application of section 1034 (c) of the Internal Revenue Code of 1954.

[AI summary unavailable — showing source text] Requires the Secretary of the Treasury, in administering Internal Revenue Code provisions with respect to nonrecognition of gain on the sale or exchange of a residence, to extend from two years to five years the nonrecognition qualification period in the case of an individual who: (1) sold his principal residence in 1977; (2) purchased property on which to construct a new principal residence; (3) commenced construction in the same year; (4) brought an action against the builder when the construction was terminated before completion; (5) suspended construction so that the partially constructed residence could be used as evidence in connection with the prosecution of such builder; and (6) obtained judgement but failed to meet the statutory requirements with respect to occupancy of the new principal residence because of such suspension of construction.…