119 HR 9064 IH: 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.
U.S. House of Representatives
2026-05-29
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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.
1.Temporary increase to capital gains exclusion for sale of a primary residence by a senior
(a)Section 121(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (6)Special increased exclusion for sales by certain seniors during taxable years 2027 through 2030 (A) In the case of a sale or exchange of a qualifying residence after December 31, 2026, and before January 1, 2031—
(i)
in the case a qualifying senior who is not married on the date of such sale or exchange, paragraph (1) shall be applied by substituting $1,000,000
for $250,000
,
(ii)
the case of married individuals who make a joint return for the taxable year of such sale or exchange, if either spouse is a qualifying senior, paragraphs (2) and (4) shall each be applied by substituting $1,000,000
for $500,000
each place it appears, and
(iii)
in the case of a qualifying senior who is married and makes a separate return for the taxable year of such sale or exchange, paragraph (1) shall be applied by substituting 500,000
for $250,000.
.
(B)For purposes of this paragraph, the term qualifying senior
means an individual who is at least 65 years old on the date of such sale or exchange. (C)For purposes of this paragraph, the term qualifying residence
means a principal residence that has been owned by the taxpayer (in the case of a joint return, by either spouse) for at least 25 years..
(b)The amendment made by this section shall apply to taxable years beginning after December 31, 2026.