H.R. 9064: To amend the Internal Revenue Code of 1986 to temporarily increase the capital gains exclusion for any qualifying senior who sells a principal residence during a qualifying year, and for other purposes.

This bill proposes to make changes to the Internal Revenue Code regarding capital gains tax exclusions for senior citizens selling their primary residences. Here are the key points of the bill:

Increased Capital Gains Exclusion

• The bill aims to temporarily increase the capital gains exclusion for seniors selling their homes during specific years.
• For sales conducted between January 1, 2027, and December 31, 2030, seniors will benefit from a higher exclusion amount when calculating capital gains taxes.

Details of the Exclusions

• For qualifying seniors who are single, the capital gains exclusion will increase from $250,000 to $1,000,000.
• For married couples filing jointly, if at least one spouse is a qualifying senior, the exclusion will increase from $500,000 to $1,000,000.
• For married seniors filing separately, the exclusion will increase from $250,000 to $500,000.

Qualifying Seniors and Residences

• A "qualifying senior" is defined as an individual who is at least 65 years old on the date of the sale.
• A "qualifying residence" is defined as the principal residence that has been owned by the taxpayer for at least 25 years.

Effective Date

• The changes proposed will take effect for taxable years beginning after December 31, 2026.

Relevant Companies

• None found