This bill would add a new section to the federal tax code to let some older home sellers exclude profit from taxable income. The exclusion applies when an individual who has reached age 65 sells real property to a first-time homebuyer who will use it as their main home. The sale price must be $500,000 or less. The buyer must sign the closing documents under penalty of perjury saying they are a first-time homebuyer and will use the property as their principal residence. The bill defines a first-time homebuyer as a person (or that person’s spouse) who has not owned a principal residence before. If this new rule applies, the existing section 121 exclusion for sales of a principal residence would not apply to that sale. The new rule would apply to sales after December 31, 2026, and would not apply to any sale after December 31, 2031. The bill was introduced on January 14, 2026, and referred to the House Committee on Ways and Means.
No publicly available information on the bill’s federal budgetary or revenue effects is included in the provided text.
The bill text and metadata list the sponsors who introduced the measure: Representatives John McGuire, Tom Barrett, Pete Stauber, Marlin Stutzman, Derek Schmidt, Ryan Mackenzie, Abraham Hamadeh, Mariannette Miller-Meeks, Kat Cammack, Mark Messmer, Jeff Hurd, Jefferson Shreve, and Mike Kennedy. The provided text does not include statements of purpose or additional explanations from the sponsors.
No publicly available information about objections, opposing arguments, or formal opposition is included in the provided text.