Sponsors (8)
The bill eliminates capital gains tax on sales of primary residences—delivering substantial tax relief to homeowners (especially wealthy sellers)—while reducing federal revenue and concentrating benefits among higher‑income households.
Homeowners who sell their primary residence can exclude unlimited capital gains, reducing or eliminating federal capital gains tax when they sell their home.
Married couples continue to be subject to the existing ownership/use and one-sale-every-2-years rule, preserving basic anti‑abuse occupancy tests while the exclusion is expanded.
All taxpayers may face higher federal budget pressure because revenue from capital gains on home sales will decline, potentially increasing deficits or requiring offsetting tax increases or spending cuts.
High‑income homeowners selling expensive primary residences receive the largest tax benefit, increasing after‑tax wealth concentration and worsening inequality.
Based on analysis of 2 sections of legislative text.
Removes the $250K/$500K dollar caps on the exclusion of gain from sale of a principal residence while keeping the ownership/use and two‑year frequency tests.
Official title: To amend the Internal Revenue Code of 1986 to eliminate the dollar limitations on the exclusion of gain from sales of principal residences, and for other purposes.
Introduced July 10, 2025 by Marjorie Taylor Greene · Last progress July 10, 2025
Removes the current dollar limits ($250,000 single; $500,000 joint) on the capital gain exclusion for the sale of a principal residence so homeowners can exclude unlimited gain if they meet the ownership/use and two‑year frequency tests. The other existing rules — that the seller owned and used the home as a principal residence for at least two of the five years before the sale and that the exclusion can generally be used once every two years — remain in place. The change applies to sales and exchanges after enactment.