119 HR 7131 IH: Middle Class Home Tax Elimination Act U.S. House of Representatives 2026-01-16 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I119th CONGRESS2d SessionH. R. 7131IN THE HOUSE OF REPRESENTATIVESJanuary 16, 2026Mr. Fitzgerald introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo 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.

1.

Short title

This Act may be cited as the Middle Class Home Tax Elimination Act.

2.

Elimination of dollar limitations on exclusion of gain from sales of principal residences

(a)

In general

Section 121(b) of the Internal Revenue Code of 1986 is amended—(1)by striking paragraphs (1), (2), and (4), and(2)by redesignating paragraphs (3) and (5) as paragraphs (1) and (2), respectively.(b)

Conforming amendments

Section 121(c) of such Code is amended—(1)in paragraph (1), by striking , and subsection (b)(3) and all that follows through 2 years and inserting , and subsection (b)(1), shall not apply, and(2)in paragraph (2)(A)(ii), by striking subsection (b)(3) and inserting subsection (b)(1).(c)

Effective date

The amendments made by this section shall apply to sales and exchanges after the date of the enactment of this Act.