H.R. 7034House119th Congress (2025-2027)In Committee

To amend the Internal Revenue Code of 1986 to eliminate the dollar limitations on the exclusion of gain from sales of principal residences, and for other purposes.

AI-Generated Summary

Updated January 29, 2026 at 5:11 AM UTC

The bill removes the current dollar caps on the capital‑gain exclusion for the sale of a principal residence. Homeowners would be able to exclude all gain from the sale of their main home, rather than being limited to $250,000 (or $500,000 for married couples). The change applies to any qualifying home sale after the law takes effect and affects all individual taxpayers.

Key Provisions

Amends IRC §121(b) by deleting the paragraphs that set the $250,000/$500,000 gain exclusion limits.
Renumbers the remaining paragraphs of §121(b) as the new (1) and (2).
Updates references in §121(c) to match the revised paragraph numbering and removes language tied to the old limits.
Specifies that the changes apply to sales and exchanges occurring after enactment.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 13, 2026

View full timeline

HouseIntro Referral

Introduced in House

January 13, 2026

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 13, 2026

Bill Text

Latest available legislative text

Reading Mode

Raw Text PDF XML

Introduced in HouseIssued January 13, 2026

119th CONGRESS

2d Session

H. R. 7034

IN THE HOUSE OF REPRESENTATIVES

January 13, 2026

Mr. Goldman of Texas 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 eliminate the dollar limitations on the exclusion of gain from sales of principal residences, and for other purposes.

Elimination of dollar limitations on exclusion of gain from sales of principal residences

(a)

In general

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

(1)

by striking paragraphs (1), (2), and (4), and

(2)

by redesignating paragraphs (3) and (5) as paragraphs (1) and (2), respectively.

(b)

Conforming amendments

Section 121(c) of such Code is amended—

(1)

in paragraph (1), by striking , and subsection (b)(3) and all that follows through 2 years and inserting , and subsection (b)(1), shall not apply, and

(2)

in paragraph (2)(A)(ii), by striking subsection (b)(3) and inserting subsection (b)(1).

(c)

Effective date

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