HR1340-119

What This Bill Does:
This bill makes it easier for people to sell their main homes without paying taxes on some of the gains. It increases the amount of profit you can make from selling your home tax-free from $250,000 (for individuals) or $500,000 (for married couples) to $500,000 and $1,000,000 respectively. This change is permanent, but it won't affect sales that happen before 2024.

Who Benefits and How:
- Homeowners: If you're selling your main home, you'll pay less tax on any profits because the exclusion limit has increased.
- Real Estate Industry: With more people potentially willing to sell their homes due to these changes, there could be an increase in real estate transactions, benefiting agents, brokers, and related businesses.

Who Bears the Burden and How:
- Taxpayers: While this bill doesn't directly increase taxes on anyone, it could lead to slightly higher tax revenues for the government if more homes are sold.
- Future Homebuyers: If home prices rise due to increased demand from more sales, first-time buyers might face stiffer competition or higher prices.

Key Provisions:
- The exclusion limit for individuals increases from $250,000 to $500,000.
- The exclusion limit for married couples increases from $500,000 to $1,000,000.
- These changes are permanent and will apply to sales after 2024.
- After 2024, the exclusion limits will be adjusted annually for inflation.