119th (2025–2027)
H.R. 7051
The American Dream Act would allow seniors aged 65 and older to exclude capital gains from federal taxes when selling a home to a first-time homebuyer, provided the sale price does not exceed $500,000. This tax break would apply only when the buyer purchases the property as their primary residence and submits a sworn statement confirming their first-time homebuyer status. The bill affects older homeowners looking to sell and first-time homebuyers purchasing from them, potentially making it more affordable for seniors to downsize without a large tax bill while incentivizing them to sell to first-time buyers. The tax exclusion would take effect for sales occurring after December 31, 2026, and would expire on December 31, 2031, creating a five-year window for the provision. No specific funding is allocated since this bill reduces tax revenue rather than appropriating new spending.