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PUBLIC LAW 88-27 2-FEB. 26, 1964
[78 STAT.
employee for the period beginning January 1, 1964, and ending April 80, 1964. SEC. 205. AMOUNTS RECEIVED UNDER WAGE CONTINUATION PLANS. (a) WAGE CONTINUATION PLANS.—The second sentence of sec-
^8^ |tat,^3o. 26 Ttcr- 105. o« u s e in.:
f JQjj 105(d) (relating to wage continuation plans) is amended to read ^^ follows: "The preceding sentence shall not apply to amounts attributable to the first 30 calendar days in such period, if such amounts are at a rate which exceeds 75 percent of the regular weekly rate of wages of the employee (as determined under regulations prescribed by the Secretary or his delegate). I f amounts attributable to the first 80 calendar days in such period are at a rate which does not exceed 75 percent of the regular weekly rate of wages of the employee, the first sentence of this subsection (1) shall not apply to the extent that such amounts exceed a weekly rate of $75, and (2) shall not apply to amounts attributable to the first 7 calendar days in such period unless t he employee is hospitalized on account of personal injuries or sickness for at least one day during such period." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to amounts attributable to periods of absence commencing after December 31, 1963. SEC. 206. EXCLUSION FROM GROSS INCOME OF GAIN ON SALE OR EXCHANGE OF RESIDENCE OF INDIVIDUAL WHO HAS ATTAINED AGE 65. 26 USC 101-121. (a) IN GENERAL.—Part III of subchapter B of chapter 1 (relating to items specifically excluded from gross income) is amended by redesignating section 121 as section 122 and by inserting before such section the lollowing new section: "SEC. 121. GAIN FROM SALE OR EXCHANGE OF RESIDENCE OF INDIVIDUAL WHO HAS ATTAINED AGE 65. " (a) GENERAL RULE. — A t the election of the taxpayer, gross income does not include gain from the sale or exchange of property if— "(1) the taxpayer has attained the age of 65 before the date of such sale or exchange, and "(2) during the 8-year period ending on the date of the sale or exchange, such property has been owned and used by the taxpayer as his principal residence for periods aggregating 5 years or more. " (b) LIMITATIONS.— "(1) W H E R E ADJUSTED SALES PRICE EXCEEDS
26 USC 1034.
$20,000.—If the adjusted sales price of the property sold or exchanged exceeds $20,000, subsection (a) shall apply to that portion of the gain which bears the same ratio to the total amount of such gain as $20,000 bears to such adjusted sales price. For purposes of Uie preceding sentence, the term 'adjusted sales price' has the meaning assigned to such term by section 1034(b)(1) (determined without regard to subsection (d)(7) of this section). " (2) APPLICATION TO ONLY ONE SALE OR EXCHANGE.—Sub-
section (a) shall not apply to any sale or exchange by the taxpayer if an election by the taxpayer or his spouse under subsection (a) with respect to any other sale or exchange is in effect. "(c) ELT^.CTION.—An election under subsection (a) may be made or revoked at any time before the expiration of the period for making a claim for credit or refund of the tax imposed by this chapter for the taxable year in which the sale or exchange occurred, and shall be made or I'evoked in such manner as the Secretary or his delegate shall by regulations pi'escribe. I n the case of a taxpayer who is married, an election under subsection (a) or a revocation (hereof may be made only if his s^wuse joins in such election or revocation.
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