More Homes on the Market Act

This legislation, known as the "More Homes on the Market Act," aims to significantly increase the amount of capital gains that can be excluded from taxation when an individual sells their principal residence. It specifically amends Section 121(b) of the Internal Revenue Code of 1986 to adjust the current exclusion limits. Under the proposed changes, the maximum exclusion for single taxpayers would double from $250,000 to $500,000 , while for married couples filing jointly, the exclusion would increase from $500,000 to $1,000,000 . Furthermore, to maintain their value over time, these new exclusion thresholds would be subject to annual cost-of-living adjustments for inflation , beginning with taxable years after 2024. These adjustments would be rounded to the nearest lowest multiple of $100. The amendments would apply to all sales and exchanges occurring after the bill's enactment.