A bill to amend the Internal Revenue Code of 1954 to deny the benefits of the accelerated cost recovery system to residential real property acquired from the Federal Government in a sale without competitive bidding.

Amends the Internal Revenue Code to exclude from eligibility for accelerated cost recovery residential real property acquired from the Government in a sale without competitive bidding. Provides that such property shall be depreciated by using the straight line method over a recovery period of 40 years.