A bill to amend the Internal Revenue Code of 1954 to provide that nonrecognition of gain on the sale of a principal residence shall apply where one of the spouses who occupied the old residence dies before occupying the new residence.

Amends Internal Revenue Code income tax provisions relating to the nonrecognition of gain from the sale of a taxpayer's principal residence to provide that in cases when a taxpayer dies after the sale of the old residence and before the purchase of a new one: (1) his or her consent to the allotment, in accordance with regulations, between spouses of certain gain on the sale will be presumed; and (2) the requirement that the new residence be used as the principal residence of the taxpayer will not apply.