A bill to amend the Internal Revenue Code of 1954 to clarify the application of the imputed interest and interest accrual rules in the case of sales of residences, farms, and real property held for trade, business or investment purposes.

Amends the Internal Revenue Code to exempt from the application of imputed interest rules: (1) the first $250,000 of the sale price of residential property sold by an individual; (2) the first $1,000,000 of the sale price of farm property; and (3) the first $500,000 of the sale price of business, trade, or investment property.