To amend the Internal Revenue Code of 1986 to provide that the sale of a life estate or a remainder interest in a principal residence qualifies for the one-time exclusion of gain on sale of a principal residence.

Amends the Internal Revenue Code to exclude from gain the sale of a life estate or a remainder interest in a principal residence by a person eligible for the one-time "55 years or older" exclusion of gain from the sale of such residence. Stipulates that such provision shall not apply to related party sales.