Capital Gains important new bill!

[LaurieK938235]

1. Just introduced: "H.R. 9064: To amend the Internal Revenue Code of 1986 to temporarily increase the capital gains exclusion for any qualifying senior who sells a principal residence during a qualifying year, and for other purposes."
   I'm a 33 year Pasadena homeowner and am now retired and looking to move to a life care community but am facing a huge amount of capital gains that will make it difficult for me to afford. I understand that the $250,000 exclusion for a single person covered a good amount of the tax bite in the past, but now it's woefully inadequate to fund retirement. I think it's totally reasonable to grant a higher exclusion. I hope we can help it to pass, and perhaps even make it permanent.

[GailL1]

@LaurieK938235 

“The Nest Egg Protection Act”  - what a fitting name.  HAHA 

Not that I am complaining but I am wondering why it has been introduced as a “TEMPORARY” measure?  From 2027 - 2030?  Seems like they are only doing this for the selected few baby boomers that can sell during this timing. 

The things that I really do like about the Bill is that to take advantage of this high(er) exclusion, you have to have owned the subject home for 25 years and you also have to be age 65 or older.

The exclusion goes from $ 250,000 to $ 1,000,000 and for joint payers from $500,000 to $ 5,000,000 - there was something about those that file separate returns and don’t live together but I stopped reading it.

You know the reason it will NOT pass - it goes against the AFFORDABILITY efforts that both parties seem to be looking for in housing now.  

Just like Social Security should not be ones only retirement money - neither should all of our other retirement money be tied up in our “nest”.  Every time a home is sold to cash in on market escalated equity, the cost of housing in an area goes up and up and it continues to go up in many instances.  

The Housing Bill that is most likely going to pass is the 21st Century ROAD to Housing Act,   Now there is a BIPARTISAN piece of legislation if I ever did see one 

Banking.Senate.gov - 06/16/2026 - Scott(R) , Warren (D) , Hill (R), Waters (D) Release Updated Bill ... 

BTW, selling ones home with a high value is gonna get you a very, very high Medicare premium (IRMAA) in the year that you sell it - if over the age of 63 -

SSA.gov - Medicare Premiums- Rules for Higher-Income Beneficiaries  

Now that will take a chunk out of the ole retirement income depending on what income bracket you fall into for that year when your capital gains soared.