hold on there's just too much going on in Congress lmao...
Removes tax limits on main home sales; adds tax break for selling to first-time buyers.
Sponsors Ms. Mace and Ms. Boebert (House of Representatives).
In committee, no House vote yet.
This bill, introduced by Representatives Mace and Boebert, proposes significant changes to federal taxes on home sales. It aims to eliminate the current dollar limits on how much profit from a main home sale can be tax-free. Additionally, it creates a new way for sellers to get a partial tax exclusion if they sell any residence to a first-time homebuyer. The bill has been referred to the House Ways and Means Committee for review and has not yet been voted on by the full House of Representatives.
Introduced Feb 5, 2026
This bill was introduced in the House of Representatives on February 5, 2026, and immediately referred to the House Committee on Ways and Means. For the bill to become law, it must pass through this committee, be voted on and approved by the full House, then go through a similar process in the Senate, and finally be signed by the President.
Currently, federal tax law limits the amount of profit from selling your main home that can be tax-free (typically $250,000 for single filers, $500,000 for married couples). If this bill passes, these limits would be removed, meaning all gain from the sale of your primary residence could be excluded from federal taxes. The bill also introduces a new provision: if you sell a home to someone who qualifies as a 'first-time homebuyer' (meaning they haven't owned a principal residence in the last three years), you could receive a partial tax exclusion on the profit, even if that home wasn't your main residence for the full qualifying period.
Supporters Say
Supporters might argue this bill helps homeowners retain more of their wealth, encourages home sales, and supports new buyers.
Critics Say
Critics might raise concerns about the bill's impact on federal tax revenue and whether it disproportionately benefits wealthier homeowners.
Proponents of the bill could suggest it boosts housing market liquidity by making it more financially attractive for people to sell their homes, especially to first-time buyers. They might also highlight how eliminating capital gains taxes on primary residences could help people downsize or relocate without a significant tax burden. Opponents, however, might argue that removing capital gains limits could primarily benefit those with higher-value properties and could lead to a substantial loss of government revenue that might otherwise fund public services.