H.R. 7349 — Time to Heal Act

This section revises the special rule for sales or exchanges of a principal residence by an individual whose spouse is deceased on the date of sale, allowing exclusion of up to $500,000 of gain (instead of $250,000) if the couple met the ownership and use requirements before the death and the individual has not remarried by the close of the taxable year of the sale. (Previously, this exclusion applied only to sales within two years after the spouse's death.) The amendment applies to sales and exchanges in taxable years beginning after enactment.