Sponsor
Nicole Malliotakis
Representative · R-NY
Representative · R-NY
The bill offers a temporary, targeted tax break that helps long‑tenured senior homeowners preserve home equity, but it reduces federal revenue, favors an older cohort over newer homeowners, and may distort the timing of home sales.
Seniors (homeowners age 65+ who owned their principal residence for 25+ years), including married couples filing jointly, can exclude up to $1,000,000 of capital gain on a home sale for 2027–2030, lowering their federal tax bills and preserving home equity for retirement or care needs.
All taxpayers: the $1,000,000 exclusion reduces federal revenue, which could increase deficits or force cuts/offsets to other programs and services.
Homeowners and the housing market: the temporary (2027–2030) window creates incentives to time home sales into that period, potentially distorting market behavior and prices.
Younger and shorter‑term owners: the 25‑year ownership requirement excludes newer and younger homeowners, creating unequal treatment across age cohorts.
Based on analysis of 1 section of legislative text.
Temporarily raises the capital‑gains exclusion for long‑owned principal residences sold by qualifying seniors to larger amounts for sales in 2027–2030.
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.
Introduced May 29, 2026 by Nicole Malliotakis · Last progress May 29, 2026
Creates a temporary, larger capital‑gains exclusion for long‑owned principal residences sold by qualifying seniors: for sales in calendar years 2027–2030 the exclusion for single qualifying seniors is raised to $1,000,000 (from $250,000), for married joint filers where either spouse is a qualifying senior the joint exclusion is raised to $1,000,000 (from $500,000), and for married filing separately qualifying seniors the individual exclusion is $500,000 (from $250,000). A qualifying senior is any seller aged 65 or older at the date of sale whose principal residence (owned by the taxpayer or either spouse) has been owned at least 25 years.