78 STAT. ] "(d)
PUBLIC LAW 88-272-FEB. 26, 1964
SPECIAL RULES.— "(1) PROPERTY HELD JOINTLY BY HUSBAND AND WIFE.—For
purposes of this section, if— " (A) property is held by a husband and wife as joint tenants, tenants by the entirety, or community property, " (B) such husband and wife make a joint return under Stat. 733. section 6013 for the taxable year of the sale or exchange, and 68Au s e 6013. 26 " (C) one spouse satisfies the age, holding, and use requirements of subsection (a) with respect to such property, then both husband and wife shall be treated as satisfying the age, holding, and use requirements of subsection (a) with respect to such property. " (2) PROPERTY OF DECEASED SPOUSE.—For purposes of this section, in the case of an unmarried individual whose spouse is deceased on the date of the sale or exchange of property, if— " (A) the deceased spouse (during the 8-year period ending on the date of the sale or exchange) satisfied the holding and use requirements of subsection (a)(2) with respect to such property, and " (B) no election by the deceased spouse undei- subsection (a) is in effect with respect to a prior sale or exchange, then such individual shall be treated as satisfying the holding and use requirements of subsection (a)(2) with resjx'ct to suclv property. "(3) TENANT-STC)€KI10IJ)ER I N (OOPEKATIM-: H()l81N(5^ CORPORATION.—For purposes of this section, if the taxpayer holds stock as a tenant-stockholder (as defined in section 216) in a coopera- 26 USC 216. tive housing corporation (as defined in such section), then— " (A) the holding requirements of subsection (a)(2) shall be applied to the holding of such stock, and " (B) the use requirements of subsection (a)(2) shall be applied to the house or apartment which the taxpayer was entitled to occupy as such stockholder. "(4) INVOLI'NTARY CONVERSIONS.—F"()r purposes of this section. the destruction, theft, seizure, reijuisition, or condemnation of property shall be treated as the sale of such property. "(5) PROPERI'Y USED IN PART AS PRINCIPAL RESIDENCE.—Tu the case of property only a portion of which, during the 8-year period ending on the date of the sale or exchange, has been owned and used by the taxpayer as his principal residence for periods aggregating 5 years or more, this section shall appl3' with respect to so much of the gain from the sale or exchange of such property as is <leterniined, undei' regulations prescribed by the Secretary or his delegate, to be attributable to the portion of the property so owned and used by the taxpayer. "(6) DETERMINATION OF MARITAL STATUS.—In the case of any sjile or exchange, for purposes of this section— " (A) the determination of whether an individual is married shall l>e made as of the date of the sale or exchange: and " (B) an individual legally separated from his spouse under a decree of div^orce oi- of separate maintenance shall not be considered as married. "(7) APPLICATION OF SECTIONS loaa AND JO.U.—In applying sections 1033 (relating to involuntary conversions) and 1034 1034.^^*^ ^ ° " ' (relating to sale or exchange of residence), the amount realized from the sale or exchange of property shall be treated as behig the amount determined without leyfard to this section, reduced by 31-667 0-65—6
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