Extend the exemption of income taxes on the sale of a personal residence to 10 years.

Under current tax law a homeowner who buys a new home is exempt from taxes on profit from selling his/her previous home if it is sold within 3 years. Because of the current housing/economic crisis, many homeowners are holding on to their previous home (possibly renting it out) until property values recover. This is good for everyone because it keeps more homes off the market, thus encouraging recovery of real estate values. However, the prospect of paying income tax (especially if capital gains tax rates go back to ordinary income tax rates, as they should), stifles this positive move. By extending the exemption to 10 years more people will choose to keep their homes off the market.