H.R. 1340 – Reading Mode

119th CONGRESS

1st Session

H. R. 1340

IN THE HOUSE OF REPRESENTATIVES

February 13, 2025

Mr. Panetta (for himself, Mr. Kelly of Pennsylvania, Ms. Malliotakis, Mr. Yakym, Mr. Correa, Ms. DelBene, Ms. Scholten, Ms. Brownley, Ms. Salazar, Mr. Mullin, Mr. Issa, Mr. Harder of California, Mr. Bacon, Ms. McCollum, Mr. Goldman of New York, Mr. Rutherford, Mr. Costa, Ms. Barragán, Mr. Swalwell, Mr. Lawler, Ms. De La Cruz, Ms. Pettersen, Ms. Ansari, Mr. Liccardo, Mr. Gottheimer, Mr. Thanedar, Mr. Carbajal, and Mr. Fitzpatrick) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to increase the exclusion of gain from the sale of a principal residence, and for other purposes.

Short title

This Act may be cited as the More Homes on the Market Act.

Increase of exclusion of gain from sale of principal residence

(a)

In general

Section 121(b) of the Internal Revenue Code of 1986 is amended—

(1)

by striking $250,000 and inserting $500,000 each place it appears,

(2)

by striking 500,000 and inserting $1,000,000 each place it appears,

(3)

in paragraph (2)(A), in the heading, by striking $500,000 and inserting $1,000,000, and

(4)

by adding at the end the following new paragraph:

(5)

Adjustment for inflation

In the case of a taxable year beginning after 2024, the $500,000 and $1,000,000 amounts in paragraphs (1), (2), and (4) shall be increased by an amount equal to—

(A)

such dollar amount, multiplied by

(B)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2023 for 2016 in subparagraph (A)(ii) thereof.

If any increase under this clause is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.

(b)

Effective date

The amendments made by this section shall apply to sales and exchanges after the date of the enactment of this Act.