119-HR-4327 Journalist Public Summary
119 · HR 4327 No Tax on Home Sales Act
A House bill would scrap the $250,000/$500,000 cap on how much profit from selling your main home can be tax‑free, while keeping the usual residency and timing rules; it’s been introduced and remains in committee as of January 21, 2026. (congress.gov)
Headline Summary
End the cap on tax‑free home‑sale profits: the bill removes the dollar limits under Section 121 but keeps rules like living in the home for two of the past five years and the “once every two years” limit. (congress.gov)
What It Does
The No Tax on Home Sales Act would eliminate the $250,000 (single) and $500,000 (married filing jointly) caps on the exclusion of gain when you sell your principal residence. You’d still have to meet current eligibility rules—own and use the home as your main residence for at least two of the last five years—and you could still use the exclusion only once every two years. The change would apply to sales after enactment. (congress.gov)
- Removes Section 121’s dollar limits on excluded gain; other Section 121 provisions remain. (congress.gov)
- Keeps the 2‑out‑of‑5‑years ownership/use test and the “one sale every 2 years” rule. (law.cornell.edu)
- Maintains “nonqualified use” rules that can limit the exclusion if the home wasn’t your principal residence during part of ownership. (law.cornell.edu)
- Takes effect for sales after the bill becomes law (no retroactive date in the text). (congress.gov)
Who’s For It
- Sponsor: Rep. Marjorie Taylor Greene (R‑GA). She argues eliminating the tax cap would help long‑time owners—especially seniors—unlock equity and move, easing the “lock‑in” effect. (congress.gov)
- Cosponsors (House Republicans): Burgess Owens (UT), David J. Taylor (OH), Abraham Hamadeh (AZ), and Mark Alford (MO). (congress.gov)
- President Trump has signaled openness to ending capital‑gains taxes on primary‑home sales, framing it as a way to stimulate the housing market. (cnbc.com)
- Related but narrower support: the National Association of Realtors backs raising and indexing the existing $250k/$500k caps (not full elimination) to reflect price growth. (nar.realtor)
Who’s Against It
- Budget and tax analysts note that scrapping the cap would reduce federal revenue and could skew benefits toward higher‑income households with large gains. (congress.gov)
- Some economists and market analysts say this change alone may do little to fix the housing shortage; many sellers already owe no tax under current caps, so overall supply effects could be modest. (wtop.com)
What’s Next
Status: Introduced July 10, 2025, and referred to the House Ways and Means Committee; on January 21, 2026, Rep. Mark Alford was designated as first sponsor for administrative purposes (adding cosponsors, reprints). No floor votes or Senate action yet. (congress.gov)
Discussion