A bill to amend the Internal Revenue Code of 1954 to provide that the holding period for a new principal residence which replaces a principal residence involuntarily converted may be increased by the holding period of the involuntarily converted residence for purposes of section 121.

Amends the Internal Revenue Code to provide that the amount of time which a taxpayer holds a principal residence, for purposes of the holding period requirements for the nonrecognition of gain from the sale of a principal residence by a taxpayer who has attained age 65, may be increased by the amount of time such taxpayer held a prior principal residence which was involuntarily converted through destruction, theft, seizure, requisition, or condemnation.