H.R. 7051

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7051 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7051

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.

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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

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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.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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:

``SEC. 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.
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