More Homes on the Market Act
Summary
What This Bill Does
The More Homes on the Market Act changes Internal Revenue Code section 121. Homeowners selling a principal residence could exclude up to $500,000 of gain instead of $250,000, and married couples could exclude up to $1,000,000 instead of $500,000. Beginning after 2024, those dollar limits would be indexed for inflation using the section 1(f)(3) cost-of-living adjustment. The bill is designed to reduce the tax lock-in facing long-time homeowners whose home values rose far beyond the old exclusion thresholds.
Who Benefits and How
Long-time homeowners benefit because more appreciation on a primary home can be sold tax-free. Married home sellers benefit because the joint exclusion rises to $1,000,000 and then adjusts for inflation. Older homeowners benefit if lower capital-gain exposure makes it easier to downsize or move closer to family or care. Housing-market buyers benefit indirectly if tax relief encourages more owners to list homes that would otherwise stay off the market.
Who Bears the Burden and How
Federal taxpayers bear the revenue cost of excluding more home-sale gains from federal income tax. The Internal Revenue Service must administer higher and inflation-indexed exclusion thresholds. Budget writers lose some capital-gains revenue that would otherwise come from high-appreciation home sales. Tax preparers must update section 121 calculations and client planning for the new thresholds.
Key Provisions
- Amends section 121 to increase the single-filer principal-residence gain exclusion to $500,000.
- Amends section 121 to increase the joint-return exclusion to $1,000,000.
- Provides inflation indexing for the higher exclusion amounts after 2024.
- Extends the higher limits to sales and exchanges after enactment.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Amends the principal-residence capital-gain exclusion by doubling the single-filer exclusion to $500,000, doubling the joint exclusion to $1,000,000, and indexing both amounts for inflation after 2024.
Key Policy Areas
Tax, Housing, Capital Gains
Primary Purpose
Amends the principal-residence capital-gain exclusion by doubling the single-filer exclusion to $500,000, doubling the joint exclusion to $1,000,000, and indexing both amounts for inflation after 2024.
Policy Domains
Resolution provisions
Identified Gains
- Long-time homeowners
- Married home sellers
- Older homeowners
- Housing-market buyers
Identified Costs
- Federal taxpayers
- Internal Revenue Service
- Budget writers
- Tax preparers
Sponsors
Legislative Progress
In CommitteeMr. Panetta (for himself, Mr. Kelly of Pennsylvania, Ms. Malliotakis, …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
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