A bill to amend the Internal Revenue Code of 1954 to provide that gain from the sale or exchange of an individual's principal residence shall be excluded from gross income.

Excludes from gross income under the Internal Revenue Code the gain from the sale or exchange of property which, during the 8-year period ending on the date of the sale or exchange, has been owned and used by the taxpayer as his principal residence for periods aggregating 5 years or more.

Sets forth special rules governing: (1) property held jointly by husband and wife; (2) property of a deceased spouse; (3) tenant-stockholders in a cooperative housing corporation; and (4) involuntary conversions. (Amends 26 U.S.C. 121)