A bill to amend the Internal Revenue Code of 1954 to allow home equity conversions through sale-life tenancy arrangements.

Amends the Internal Revenue Code to allow the one-time exclusion of gain from the sale of a principal residence by an individual aged 55 or over in transactions in which the seller retains a life tenancy in the property. Revises the rules for depreciation to: (1) allow the purchaser/lessor to take depreciation on the value of the property purchased although the seller retains a life estate; and (2) allow the depreciation deduction to be apportioned as provided in the trust instrument, on the basis of trust income in the case of a trust, or among the estate and the heirs, legatees, and devisees in the case of an estate.