Sponsors (8)
The bill eliminates federal capital-gains tax on primary-residence sales to give broad tax relief to homeowners (while preserving basic married-couple rules), at the cost of reduced federal revenue and a benefit tilt toward wealthier home sellers that could exacerbate inequality or require fiscal offsets.
Homeowners: primary-residence sellers can exclude unlimited capital gains on sale of their main home, reducing or eliminating federal capital gains tax when they sell.
Married homeowners: the bill preserves existing ownership/use and the one-sale-every-2-years rule for married couples, keeping basic anti-abuse occupancy tests while granting the expanded exclusion.
All taxpayers: federal revenue will decline as capital-gains receipts from home sales fall, increasing budget pressure that could raise deficits or force spending cuts or tax increases elsewhere.
Higher-income homeowners: the largest after-tax gains accrue to owners of expensive primary residences, concentrating wealth benefits among higher-income households and widening after-tax inequality.
Based on analysis of 2 sections of legislative text.
Removes the dollar caps on the tax exclusion for gain on sale of a primary residence while keeping ownership/use and the two‑year rule.
Introduced July 10, 2025 by Marjorie Taylor Greene · Last progress July 10, 2025
Removes the current $250,000 (single) and $500,000 (joint) caps on the amount of gain that can be excluded from federal income tax when selling a primary residence. Homeowners who meet the existing ownership and use tests and the rule limiting the exclusion to one sale every two years would be able to exclude unlimited gain on qualifying home sales for transactions after the law takes effect. The bill keeps the ownership/use and two‑year occupancy rules in place, so the exclusion still applies only to a primary residence and only if the seller meets the time-and‑use requirements; it likely reduces federal tax revenue and primarily benefits people selling higher-value homes or with large built-up gains.