Introduced in House — H.R. 7051

119th CONGRESS

2d Session

H. R. 7051

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.

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:

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.