More Homes on the Market Act

The More Homes on the Market Act proposes to increase the tax-free profit homeowners can keep when they sell their primary residence. Under current law, individuals can exclude up to $250,000 of gain from their income, while married couples filing jointly can exclude up to $500,000. This bill would increase those limits to $500,000 for individuals and $1 million for married couples.

If enacted, the bill would also require these tax exclusion limits to be adjusted annually for inflation. This change aims to account for rising home prices across the country, potentially encouraging more long-term homeowners to sell their properties without facing significant federal tax penalties.

Because this is standard legislation, it would require approval from both the House and Senate and the President's signature to become law. It has currently been referred to the House Committee on Ways and Means for further consideration.