More Homes on the Market Act

Bill 119 HR 1340, also known as the "Principal Residence Exclusion Act," aims to amend the Internal Revenue Code of 1986 in order to increase the exclusion of gain from the sale of a principal residence. Currently, homeowners are able to exclude up to $250,000 ($500,000 for married couples filing jointly) of capital gains from the sale of their primary residence from their taxable income. This bill seeks to raise that exclusion amount, allowing homeowners to keep more of the profit from the sale of their home without having to pay taxes on it.

In addition to increasing the exclusion amount, the bill also includes provisions for other purposes related to the taxation of real estate transactions. These additional purposes could include changes to how gains from the sale of second homes or investment properties are taxed, or adjustments to the rules for determining what qualifies as a "principal residence" for tax purposes.

Overall, the Principal Residence Exclusion Act is aimed at providing homeowners with greater financial flexibility when selling their primary residence, potentially incentivizing more people to buy and sell homes and stimulating the real estate market. The bill is currently being considered by Congress and may undergo revisions or amendments before being voted on.