EXTENSION OF PERIOD FOR REPLACING OLD RESIDENCE FOR PURPOSES OF NONRECOGNITION OF GAIN UNDER SECTION 1034.

SEC. 207. EXTENSION OF PERIOD FOR REPLACING OLD RESIDENCE FOR PURPOSES OF NONRECOGNITION OF GAIN UNDER SECTION 1034. (a) One-Year Period Increased to 18 Months.— (1) Subsections (a), (c)(4), (c)(5), (d), and (h) of section 1034 (relating to nonrecognition of gain on sale or exchange of residence) are each amended by striking out “1 year” each place it appears and inserting in lieu thereof “18 months”. (2) Subsection (c)(5) of section 1034 is amended by striking out “one year” and inserting in lieu thereof “18 months”. (b) 18-Month Period for Constructing New Residence Increased to 2 Years.— Subsection (c)(5) of section 1034 is amended by striking out “18 months” and inserting in lieu thereof “2 years”.