Bill > S3332

This bill amends the Internal Revenue Code to increase the tax exclusion amount for gains from the sale of a principal residence. Currently, homeowners can exclude up to $250,000 of capital gains ($500,000 for married couples) when selling their primary home. The bill would double these amounts to $500,000 for individuals and $1,000,000 for married couples. Additionally, the bill introduces an annual inflation adjustment mechanism starting in 2026, which will automatically increase these dollar amounts based on the cost of living, with any increases rounded down to the nearest $100. This change aims to provide homeowners with greater tax relief by allowing them to keep more of the profits from selling their primary residence, potentially reflecting rising home values and helping homeowners retain more of their equity. The amendments would apply to home sales and exchanges occurring after the date of the bill's enactment.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/3332/all-info