January 13, 2026
Mr. Goldman of Texas introduced the following bill; which was referred to the Committee on Ways and Means
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.
Section 1. 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.