To amend the Internal Revenue Code of 1986 to temporarily increase the capital gains exclusion for any qualifying senior who sells a principal residence during a qualifying year, and for other purposes.

Key Points

• This bill would let seniors keep more of the profit when they sell their homes. Currently, single people do not pay taxes on the first $250,000 of profit, and married couples do not pay on the first $500,000. This plan raises that limit to $1 million for both groups.
• To qualify for this higher tax break, a person must be at least 65 years old. They also must have owned and lived in the home for at least 25 years. This targets long-time homeowners who have seen their property values grow significantly over several decades.
• The higher tax break would be temporary. It would only apply to home sales that happen between the start of 2027 and the end of 2030. After that, the tax limits would go back to the current lower amounts unless Congress votes to extend them.
• This change is meant to help seniors who want to downsize but are worried about a large tax bill. Because home prices have risen so much, many seniors find that their profit is much higher than the current tax-free limits allow.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.