Senior Homeowners Could Get $1 Million Tax Break Under New GOP Bill
Summary
A new bill introduced by Representative Nicole Malliotakis proposes to temporarily increase the capital gains tax break for homeowners over 65. The bill would allow some senior homeowners to avoid paying taxes on up to $1 million of profit when selling their long-held homes between 2027 and 2030.Key Facts
- The bill is called the Nest Egg Protection Act (H.R. 9064).
- It would double the capital gains tax exclusion for seniors 65 and older, raising the limit to $1 million.
- Currently, the exclusion is $250,000 for individuals and $500,000 for married couples.
- The increased exclusion applies only if the homeowner has owned their main home for at least 25 years.
- The purpose is to help seniors sell homes without large tax bills, encouraging them to downsize and increase housing availability.
- Housing prices have tripled since 1997, but the current tax exclusion has not changed since then.
- Many seniors have a large amount of home equity due to rising home values.
- The bill aims to reduce the "lock-in effect," where seniors hesitate to sell because of possible capital gains taxes.
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