Prior to the Taxpayer Relief Act of 1997, taxpayers could defer a gain on the sale of a principal residence sold before May 7, 1997, if they purchased and occupied a new principal residence within two years before or after the sale and the cost of the new residence was at least equal to the adjusted sales price of the old residence. Some taxpayers who were at least 55 years old had a once-in-a-lifetime exclusion up to $125,000 if they owned and used the property as a principal residence for at least three years of the five-year-period ending on the date of sale. Discuss why current law with respect to the sale of a personal residence is more favorable than the law prior to the Taxpayer Relief Act of 1997.