House · HR 1340 · 119th Congress
More Homes on the Market Act
Summary
This bill raises the tax-free profit limit on home sales from $250,000 to $500,000 for single filers and from $500,000 to $1,000,000 for married couples filing jointly. These limits would also rise each year to keep up with inflation. The change affects homeowners who sell their main home and owe federal taxes on the profit.
In Favor
Many homeowners have seen their home values rise sharply over the years. The old limits were set decades ago and have not kept up with rising prices. Doubling the limits means fewer sellers will owe taxes on gains caused by inflation alone, which may encourage more people to sell and add homes to the market.
Against
This tax break mainly helps homeowners with very large gains, which tends to favor wealthier sellers in high-cost areas. The federal government collects less tax revenue as a result, which means less money for other programs or a larger deficit. The benefit does not reach renters or buyers struggling to afford a home.
Additional Considerations
Purpose & Problem
Is the problem real and worth federal action?
This bill raises the tax-free limit on profit from selling a home. It targets homeowners who owe federal taxes because their home gained more value than the current limit allows.
Scope & Related Provisions
Does it stay focused, or carry unrelated add-ons?
The provisions stay on topic. All changes relate directly to the home-sale tax exclusion and an inflation adjustment tied to that same limit.
Who Is Affected
Who benefits, and who bears the cost?
Homeowners who sell a primary residence and earn a large profit may pay less federal tax. The federal government collects less revenue from those sales as a result.
Cost & Funding
Is it affordable and responsibly funded?
The bill reduces how much federal income tax the government collects from home-sale profits. No specific dollar cost estimate from CBO or any committee appears in the sources.
Risks & Implementation
What could go wrong in practice?
The inflation adjustment requires a yearly calculation using an existing IRS formula. Applying that formula correctly each year adds an ongoing administrative step for the IRS and for taxpayers.
For the actual bill text, see congress.gov.
AI-generated · Published 8/8/2026