A bill to amend the Internal Revenue Code of 1954 to exempt from tax gain from the sale of an individual's principal residence.

Amends the Internal Revenue Code to exclude from gross income the gain from the sale or exchange of property if: (1) the taxpayer has owned and used such property as a principal residence for periods aggregating three years out of the five preceding years; or (2) the taxpayer has owned and used such property as a principal residence for periods aggregating 11 months out of the 12 preceding months. Removes the requirement that the taxpayer must be at least 55 years old. Limits the exclusion to one sale or exchange during the taxable year (currently a taxpayer cannot exclude gain from one sale or exchange if the taxpayer has already excluded such gain from another sale or exchange). Deletes the limitation on the amount of gain which can be excluded.