To amend the Internal Revenue Code of 1986 to allow the one-time exclusion on gain from sale of a principal residence to be taken before age 55 if the taxpayer or a family member suffers a catastrophic illness.

Amends the Internal Revenue Code to allow the one-time exclusion on gain from the sale of a principal residence to be taken before age 55 if the taxpayer or a family member: (1) is physically or mentally incapable of self-care; and (2) has had such condition, or will have such condition, for at least six months.