Ill STAT. 838 PUBLIC LAW 105-34—AUG. 5, 1997 "(4) TENANT-STOCKHOLDER IN COOPERATIVE HOUSING COR- PORATION.—For purposes of this section, if the taxpayer holds stock as a tenant-stockholder (as defined in section 216) in a cooperative housing corporation (as defined in such section), then— "(A) the holding requirements of subsection (a) shall be applied to the holding of such stock, and "(B) the use requirements of subsection (a) shall be applied to the house or apartment which the taxpayer was entitled to occupy as such stockholder. "(5) INVOLUNTARY CONVERSIONS. — "(A) IN GENERAL.— For purposes of this section, the destruction, theft, seizure, requisition, or condemnation of property shall be treated as the sale of such property. "(B) APPLICATION OF SECTION IO33.—In applying section 1033 (relating to involuntary conversions), the amount realized from the sale or exchange of property shall be treated as being the amount determined without regard to this section, reduced by the amount of gain not included in gross income pursuant to this section. "(C) PROPERTY ACQUIRED AFTER INVOLUNTARY CONVER- SION.—I f the basis of the property sold or exchanged is determined (in whole or in part) under section 1033(b) (relating to basis of property acquired through involuntary conversion), then the holding and use by the taxpayer of the converted property shall be treated as holding and use by the taxpayer of the property sold or exchanged. "(6) RECOGNITION OF GAIN ATTRIBUTABLE TO DEPRECIA- TION. —Subsection (a) shall not apply to so much of the gain from the sale of any property as does not exceed the portion of the depreciation adjustments (as defined in section 1250(b)(3)) attributable to periods after May 6, 1997, in respect of such property. " (7) DETERMINATION OF USE DURING PERIODS OF OUT-OF- RESIDENCE CARE.— In the case of a taxpayer who— "(A) becomes physically or mentally incapable of self- care, and "(B) owns property and uses such property as the taxpayer's principal residence during the 5-year period described in subsection (a) for periods aggregating at least 1 year, then the taxpayer shall be treated as using such property as the taxpayer's principal residence during any time during such 5-year period in which the taxpayer owns the property and resides in any facility (including a nursing home) licensed by a State or political subdivision to care for an individual in the taxpayer's condition. "(8) SALES OF REMAINDER INTERESTS.— For purposes of this section— "(A) IN GENERAL.—At the election of the taxpayer, this section shall not fail to apply to the sale or exchange of an interest in a principal residence by reason of such interest being a remainder interest in such residence, but this section shall not apply to any other interest in such residence which is sold or exchanged separately. "(B) EXCEPTION FOR SALES TO RELATED PARTIES.— Subparagraph (A) shall not apply to any sale to, or
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