No Tax on Home Sales Act
Summary
What This Bill Does
The No Tax on Home Sales Act removes the fixed-dollar limits in Internal Revenue Code section 121 for excluding gain from the sale or exchange of a principal residence. Current law generally caps the exclusion at $250,000 for many single filers and $500,000 for many joint filers, with special cross-references for partial exclusions. The bill strikes those dollar-limit paragraphs, redesignates the remaining rules, and updates partial-exclusion cross-references so the dollar cap no longer applies. The change applies to sales and exchanges after enactment. The main effect is to shield more home-sale appreciation from federal income tax, especially in high-cost or long-held housing markets.
Who Benefits and How
Homeowners selling a principal residence benefit because taxable gain would no longer be limited by the $250,000 or $500,000 caps. Longtime homeowners in high-appreciation markets benefit because more accumulated home equity can be excluded from federal income tax. Older homeowners downsizing from long-held homes benefit if the uncapped exclusion lowers the tax cost of moving. Real estate brokers benefit indirectly if lower tax friction encourages more principal-residence sales.
Who Bears the Burden and How
The Internal Revenue Service must administer the uncapped section 121 exclusion and update forms or guidance. Federal revenue officials lose receipts from home-sale gains that exceed current exclusion caps. Budget scorekeepers must estimate the revenue effect for high-gain principal-residence sales. Taxpayers claiming the exclusion must still satisfy ownership, use, and partial-exclusion requirements that remain in section 121.
Key Provisions
- Repeals the dollar limitations on the principal-residence gain exclusion in Internal Revenue Code section 121.
- Updates partial-exclusion cross-references after removing the capped-exclusion paragraphs.
- Applies the uncapped exclusion to sales and exchanges after enactment.
- Protects homeowners in high-appreciation markets from federal income tax on more principal-residence gain.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Eliminates the Internal Revenue Code dollar caps on excluding gain from principal-residence sales and applies the uncapped exclusion to sales and exchanges after enactment.
Key Policy Areas
Tax, Housing, Homeowners
Primary Purpose
Eliminates the Internal Revenue Code dollar caps on excluding gain from principal-residence sales and applies the uncapped exclusion to sales and exchanges after enactment.
Policy Domains
Resolution provisions
Identified Gains
Contextual inference, no direct clause citation- Homeowners selling a principal residence
- Longtime homeowners in high-appreciation markets
- Older homeowners downsizing from long-held homes
- Real estate brokers
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Internal Revenue Service
- Federal revenue officials
- Budget scorekeepers
- Taxpayers claiming the exclusion
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
In CommitteeASSUMING FIRST SPONSORSHIP - Mr. Alford asked unanimous consent that …
Ms. Greene of Georgia introduced the following bill; which was …
Referred to the House Committee on Ways and Means.
Introduced in House
Impact analysis is available but no clear stakeholder effects identified. View clause-level analysis →
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
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