Citizens' Tax Relief Act of 1994

Citizens' Tax Relief Act of 1994 - Amends the Internal Revenue Code to reduce the lowest rate of income tax imposed on taxpayers other than corporations.

Repeals the rule relating to determining the basis of property acquired from a decedent. Provides for determining such basis under rules applicable to gifts and transfers in trusts. Revises and reduces the current maximum capital gains tax on inherited property.

Allows an exclusion of gain from gross income from the sale of a principal residence acquired from a decedent.