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.
- Bill Number
- H.R. 9064
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-05-29: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-08T17:56:55Z
AI-Generated Summary
Purpose
The legislation aims to temporarily increase the amount of capital gains that qualifying seniors can exclude from taxable income when selling their primary residence, specifically for sales occurring between 2027 and 2030.
Key Provisions
- Increased Exclusion Amounts:
- For unmarried qualifying seniors, the exclusion rises to $1,000,000 (from the standard $250,000).
- For married couples filing jointly where at least one spouse qualifies, the exclusion rises to $1,000,000 (from the standard $500,000).
- For married qualifying seniors filing separately, the exclusion rises to $500,000 (from the standard $250,000).
- Eligibility Requirements:
- The seller must be at least 65 years old on the sale date.
- The home must be a principal residence owned for at least 25 years.
- Timeframe: Applies only to sales or exchanges after December 31, 2026, and before January 1, 2031.
- Effective Date: Changes take effect for tax years starting after December 31, 2026.
Significant Changes to Existing Law
This bill adds a new temporary paragraph to Section 121(b) of the Internal Revenue Code of 1986, which currently provides fixed capital gains exclusions of $250,000 for single filers and $500,000 for joint filers on primary residence sales. The amendment creates higher limits exclusively for seniors meeting the ownership and age criteria during the specified period, without altering the standard rules outside that window.
Potential Impacts
- On Citizens: Qualifying seniors may retain more proceeds from home sales due to reduced tax liability, potentially aiding retirement planning or relocation.
- On Government Agencies: The Internal Revenue Service may see decreased tax collections from these transactions, requiring updates to tax forms and guidance for the affected years.
- On International Relations: No direct effects identified.
Main Stakeholders Affected
- Seniors aged 65 and older who own and sell their primary residence after 25 years of ownership.
- Married couples where at least one spouse meets the senior criteria.
- Taxpayers filing returns involving such sales during 2027–2030.
- The U.S. Department of the Treasury and Internal Revenue Service for administration and enforcement.
Notable Legal, Constitutional, or Political Implications
- Legal: Represents a targeted, time-limited modification to federal tax law under Congress's authority to regulate taxation, with clear definitions for "qualifying senior" and "qualifying residence" to limit eligibility.
- Constitutional: Falls within Congress's taxing power under Article I, without apparent conflicts with other constitutional provisions.
- Political: Focuses benefits on a specific demographic (seniors) for a defined period, potentially influencing housing market behavior among older homeowners.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Malliotakis, Nicole [R-NY-11]
Recent Actions
- 2026-05-29: Referred to the House Committee on Ways and Means.
- 2026-05-29: Introduced in House
- 2026-05-29: Introduced in House
Bill Versions
- 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. — issued 2026-05-29 — PDF (3 pages)