hold on there's just too much going on in Congress lmao...
Removes the $250,000/$500,000 cap on home sale profit exclusion.
Rep. Scott Fitzgerald (R-WI), House Ways and Means Committee.
Introduced in House, referred to committee, no vote yet.
Currently, single filers can exclude up to $250,000 of profit from home sale taxes, and married couples up to $500,000. This bill would eliminate those limits, letting you exclude all gain. Rep. Fitzgerald introduced it in January 2026; it now awaits action in the Ways and Means Committee.
Introduced Jan 16, 2026
This bill is under review by a committee. The committee holds hearings, gathers testimony from experts and stakeholders, and may propose amendments. If the committee votes to advance it, the bill moves to the full chamber for debate and a vote.
Eliminating the cap means if you sell your home for a huge profit, none is taxed. This is especially helpful in high-cost areas where profits often exceed current limits. It could also simplify tax filing for home sellers, since you wouldn't need to track gain up to the exclusion limit.
Supporters Say
Supporters say it removes a tax burden on middle-class homeowners in expensive markets, making it easier to sell and downsize.
Critics Say
Critics argue it primarily benefits wealthy homeowners with massive gains, reducing federal revenue without helping renters.
Supporters note that the current cap hasn't been adjusted for inflation since 1997, so it unfairly penalizes sellers in rising markets. Critics respond that the bill offers no benefit to the many Americans who don't own homes or whose gains don't approach the current limits, and the lost revenue could affect public services.