A bill to amend the Internal Revenue Code of 1954 to make certain changes in the rules relating to imputing interest on certain deferred payments with respect to sales and exchanges of residential, business, and investment property.

Amends the Internal Revenue Code to reduce the amount of imputed interest on deferred payments for the sale or exchange of property.

Allows a lower rate of imputed interest for: (1) the first $250,000 of the sale price of residential property sold by an individual; (2) the first $1,000,000 of the sale price of farm property sold by an individual; and (3) the first $1,000,000 of the sale price of property used in a trade or business or held for the production of income.

Provides that present rules for the imputation of interest shall not apply to assumptions of pre-effective date loans.