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.
Tax Break for Seniors Selling Long-Term Homes
This bill is currently in the early stages of the legislative process and is being reviewed by the House Committee on Ways and Means. No further actions have been scheduled for this proposal at this time. It is considered active but has not yet moved beyond the committee level.
Legislative Progress
Most tax bills introduced by individual members do not become law unless they are included in a much larger tax package. This bill is currently waiting for review in a committee.
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.
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
News
No related news coverage found for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
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.
Data Sources
Sponsor
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