To amend the Internal Revenue Code of 1986 to exclude from gross income gain on the sale of certain residential leased-fee interests to holders of the leasehold rights.

Amends the Internal Revenue Code to exclude from gross income gain from the sale of certain residential leased-fee interests to a holder of the leasehold right if such holder is: (1) a lessee of a residential house lot; (2) a lessee of a multi-family residential leasehold unit; (3) an association of apartment owners of a multi-family residential leasehold property; or (4) a cooperative housing corporation for a residential leasehold property.