INCREASE IN RATE OF WITHHOLDING OF TAX ON DISPOSITIONS OF UNITED STATES REAL PROPERTY INTERESTS.

SEC. 324. INCREASE IN RATE OF WITHHOLDING OF TAX ON DISPOSITIONS OF UNITED STATES REAL PROPERTY INTERESTS. (a) In General.—Subsections (a), (e)(3), (e)(4), and (e)(5) of section 1445 are each amended by striking “10 percent” and inserting “15 percent”. (b) Exception for Certain Residences.—Section 1445(c) is amended by adding at the end the following new paragraph: “(4) Reduced rate of withholding for residence where amount realized does not exceed $1,000,000.—In the case of a disposition— “(A) of property which is acquired by the transferee for use by the transferee as a residence, “(B) with respect to which the amount realized for such property does not exceed $1,000,000, and “(C) to which subsection (b)(5) does not apply, subsection (a) shall be applied by substituting ‘10 percent’ for ‘15 percent’.” . (c) [26 U.S.C. 1445 note] Effective Date.—The amendments made by this section shall apply to dispositions after the date which is 60 days after the date of the enactment of this Act.