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To amend the Internal Revenue Code of 1986 to exclude from gross income gains on the sale of real property to first-time homebuyers by individuals who have attained age 65.
Summary
This bill creates a tax exemption allowing individuals age 65 and older to exclude capital gains from the federal income tax when selling residential property to a first-time homebuyer, provided the sale price does not exceed $500,000. The buyer must certify under penalty of perjury that they are a first-time homebuyer purchasing the property as their principal residence. The exemption applies only to sales occurring after December 31, 2026, and expires after December 31, 2031. The provision coordinates with existing tax code provisions so both exemptions cannot be used for the same property sale.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
12 cosponsors
- Rep. Barrett, Tom [R-MI-7] (R-MI)
- Rep. Cammack, Kat [R-FL-3] (R-FL)
- Rep. Hamadeh, Abraham J. [R-AZ-8] (R-AZ)
- Rep. Hurd, Jeff [R-CO-3] (R-CO)
- Rep. Kennedy, Mike [R-UT-3] (R-UT)
- Rep. Mackenzie, Ryan [R-PA-7] (R-PA)
- Rep. Messmer, Mark B. [R-IN-8] (R-IN)
- Rep. Miller-Meeks, Mariannette [R-IA-1] (R-IA)
- Rep. Schmidt, Derek [R-KS-2] (R-KS)
- Rep. Shreve, Jefferson [R-IN-6] (R-IN)
- Rep. Stauber, Pete [R-MN-8] (R-MN)
- Rep. Stutzman, Marlin A. [R-IN-3] (R-IN)
Actions (2)
- Jan 14, 2026 Referred to the House Committee on Ways and Means. · house
- Jan 14, 2026 Introduced in House
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Full text
IN THE HOUSE OF REPRESENTATIVES
January 14, 2026
Mr. McGuire (for himself, Mr. Barrett, Mr. Stauber, Mr. Stutzman, Mr. Schmidt, Mr. Mackenzie, Mr. Hamadeh of Arizona, Mrs. Miller-Meeks, and Mrs. Cammack) 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 exclude from gross income gains on the sale of real property to first-time homebuyers by individuals who have attained age 65.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “American Dream Act”.
SEC. 2. EXCLUSION FROM GROSS INCOME OF GAINS ON THE SALE OF REAL PROPERTY TO FIRST-TIME HOMEBUYERS BY INDIVIDUALS WHO HAVE ATTAINED AGE 65.
(a) In General.—Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 121 the following new section:
“SEC. 121A. EXCLUSION OF GAIN FROM SALE OF REAL PROPERTY TO FIRST-TIME HOMEBUYERS BY INDIVIDUALS WHO HAVE ATTAINED AGE 65.
“(a) In General.—In the case of an individual, gross income shall not include gain from the sale of real property if—
“(1) the taxpayer (either spouse in the case of a joint return) has attained age 65 as of the date of such sale,
“(2) such sale is to a first-time homebuyer for use as such first-time homebuyer’s principal residence (within the meaning of section 121),
“(3) the price at which such real property is sold does not exceed $500,000, and
“(4) the closing documents with respect to such sale include a statement by the buyer made under penalty of perjury that such buyer is a first-time homebuyer and is purchasing such property for use as such buyer’s principal residence (within the meaning of section 121).
“(b) First-Time Homebuyer.—For purposes of this section, the term ‘first-time homebuyer’ means any individual if such individual, or such individual’s spouse, has not had a present ownership interest in a principal residence (within the meaning of section 121) at any time prior to the date of the sale to which this section applies.
“(c) Coordination With Exclusion of Gain From Sale of Principal Residence.—Section 121 shall not apply to any sale to which subsection
(a) applies.
“(d) Termination.—This section shall not apply to any sale after December 31, 2031.”.
(b) Clerical Amendment.—The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 121 the following new item:
“Sec. 121A. Exclusion of gain from sale of real property to first-time homebuyers by individuals who have attained age 65.”.
(c) Effective Date.—The amendments made by this section shall apply to sales after December 31, 2026, in taxable years ending after such date. <all>
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