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.
Between 2027 and 2030, homeowners aged 65 and older who sell a home they have owned for at least 25 years will be able to shield more of their profits from federal taxes. The amount of profit from a home sale that can be excluded from taxes will rise to $1 million for single seniors (up from $250,000) and for married couples (up from $500,000). Married seniors who choose to file separate tax returns will see their tax-free limit increase to $500,000.
- Referred to the House Committee on Ways and Means.
- Introduced in House
- Introduced in House
The provisions, in plain language.
Increases the limit on tax-free profit from selling a primary home from $250,000 to $1,000,000 for unmarried taxpayers who are at least 65 years old and have owned the home for at least 25 years, for sales occurring from January 1, 2027, through December 31, 2030.
Increases the limit on tax-free profit from selling a primary home from $500,000 to $1,000,000 for married couples filing jointly if at least one spouse is 65 or older and either spouse has owned the home for at least 25 years, for sales occurring from January 1, 2027, through December 31, 2030.
Increases the limit on tax-free profit from selling a primary home from $250,000 to $500,000 for married taxpayers filing separately who are at least 65 years old and have owned the home for at least 25 years, for sales occurring from January 1, 2027, through December 31, 2030.
Who it helps · who it burdens.
Who it helps
- Unmarried senior homeownersCan exclude up to $1,000,000 (increased from $250,000) of profit from the sale of their primary home from their taxable income for sales occurring between January 1, 2027, and December 31, 2030, if they are at least 65 years old and have owned the home for at least 25 years (Sec. 1(a)(6)(A)(i)).
- Married senior homeowners filing jointlyCan exclude up to $1,000,000 (increased from $500,000) of profit from the sale of their primary home from their taxable income for sales occurring between January 1, 2027, and December 31, 2030, if at least one spouse is 65 or older and either spouse has owned the home for at least 25 years (Sec. 1(a)(6)(A)(ii)).
- Married senior homeowners filing separatelyCan exclude up to $500,000 (increased from $250,000) of profit from the sale of their primary home from their taxable income for sales occurring between January 1, 2027, and December 31, 2030, if they are at least 65 years old and have owned the home for at least 25 years (Sec. 1(a)(6)(A)(iii)).
Who it burdens
- Federal governmentForegoes tax revenue from capital gains on home sales due to the increased tax-free profit limits for qualifying senior homeowners (Sec. 1(a)).