Congress quietly expands unlimited tax shelter for home sellers
H.R. 7034 — 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. · Filed by Craig Goldman (R-TX) · 6 cosponsors · Introduced Jan 13, 2026 · Referred to committee
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What it does
This bill eliminates the $250,000/$500,000 cap on the federal tax exclusion for gains when homeowners sell their primary residence. Currently, individuals can exclude up to $250,000 (or $500,000 for married couples filing jointly) of profit from taxation; gains above that are taxed as capital gains. The bill removes those dollar limits entirely, allowing homeowners to exclude ALL gains from the sale of a principal residence from federal income tax, effective immediately upon enactment.
Why we flagged it
The bill's operative mechanism is a permanent, unlimited tax exclusion for home-sale gains — a classic tax expenditure (foregone revenue) that benefits a narrow class of taxpayers. It is not a deduction or credit; it is an outright exemption from taxation, making it a direct subsidy funded by other taxpayers.
What the text implies
- The bill creates a permanent, unlimited tax shelter for real-estate appreciation, incentivizing wealth accumulation through property ownership over other forms of saving and investment.
- High-net-worth individuals and investors in appreciating markets (coastal metros, tech hubs) benefit disproportionately; rural and lower-cost housing markets see minimal benefit.
The full analysis lists 4 implications of this text.
Who stands to gain
high-net-worth homeowners; real-estate investors; homeowners in appreciating markets