A bill to amend the Internal Revenue Code of 1954 to provide for more equitable test and imputed interest rates, and for other purposes.

Amends the Internal Revenue Code to reduce the rate of imputed interest for the sale or exchange of property.

Allows a lower rate of imputed interest for the first $1,500,000 of the sales price of principal residences or farm lands.

Reduces the rate of imputed interest for purposes of determining the issue price in the case of debt instruments issued for property. Provides that such rate of imputed interest shall not apply in determining the issue price of debt instruments issued for residences and the first $1,500,000 of the sales price for farm lands.