hold on there's just too much going on in Congress lmao...
Increases tax-free home sale profit for surviving spouses.
Rep. Barrett introduced.
In committee, no House vote yet.
This bill aims to allow individuals whose spouse has died to exclude up to $500,000 in gain from the sale of their principal residence, similar to married couples. Currently, single individuals can only exclude $250,000. This change would apply if the couple met the requirements before the spouse's death and the surviving individual has not remarried. Representative Barrett introduced this bill, and it has been referred to the House Committee on Ways and Means for review, which means it is in the early stages of the legislative process.
Introduced Feb 4, 2026
This bill was introduced in the House of Representatives on February 4, 2026, and immediately referred to the House Committee on Ways and Means. For the bill to advance, the committee must review and approve it, possibly with amendments. After committee approval, it would then need to be voted on by the full House. If it passes the House, it would move to the Senate for their consideration before potentially going to the President to be signed into law.
If this bill becomes law, surviving spouses selling their primary home could exclude up to $500,000 of profit from their taxable income, a significant increase from the current $250,000 for single filers. This change would apply regardless of how much time has passed since their spouse's death, as long as they meet certain conditions and have not remarried. This means you could potentially save thousands of dollars in capital gains taxes, making it easier to afford a new home or manage finances after losing a spouse.
Supporters Say
Supporters argue this change is fair and provides crucial financial relief to individuals who have lost a spouse.
Critics Say
Critics might raise concerns about potential reductions in government tax revenue or argue for broader tax reform.
Proponents of the bill would likely emphasize that surviving spouses often face financial hardship and that maintaining the higher exclusion for an indefinite period would offer stability and prevent an additional burden during a difficult time. Opponents, if any, could argue that narrowing the tax base by offering more exclusions reduces funds for public services or that the current tax code already offers sufficient relief, although the bill text does not indicate specific opposing arguments.