Tax Exemption for Seniors Selling Homes to First-Time Buyers.
This bill creates a new tax exclusion allowing individuals aged 65 and older to sell real property without paying federal income tax on the profit (capital gains), provided the buyer is a first-time homebuyer. This measure aims to incentivize seniors to sell their homes, potentially increasing the housing supply available to new entrants in the market. The exclusion applies only to sales priced at $500,000 or less and is temporary, ending in 2031.
Key points
Seniors (age 65+) can exclude capital gains from income when selling a home to a first-time homebuyer.
The maximum sale price eligible for this tax exclusion is $500,000.
The buyer must certify under penalty of perjury that they are a first-time homebuyer and will use the property as their principal residence.
The provision takes effect after December 31, 2026, and is set to expire at the end of 2031.
Status:
Introduced
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