H.R. 7131

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7131 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7131

To amend the Internal Revenue Code of 1986 to eliminate the dollar 
limitations on the exclusion of gain from sales of principal 
residences, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

January 16, 2026

Mr. Fitzgerald 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 eliminate the dollar 
limitations on the exclusion of gain from sales of principal 
residences, and for other purposes.

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 ``Middle Class Home Tax Elimination 
Act''.

SEC. 2. ELIMINATION OF DOLLAR LIMITATIONS ON EXCLUSION OF GAIN FROM 
SALES OF PRINCIPAL RESIDENCES.

(a) In General.--Section 121(b) of the Internal Revenue Code of 
1986 is amended--
(1) by striking paragraphs (1), (2), and (4), and
(2) by redesignating paragraphs (3) and (5) as paragraphs 
(1) and (2), respectively.
(b) Conforming Amendments.--Section 121(c) of such Code is 
amended--
(1) in paragraph (1), by striking ``, and subsection 
(b)(3)'' and all that follows through ``2 years'' and inserting 
``, and subsection (b)(1), shall not apply'', and
(2) in paragraph (2)(A)(ii), by striking ``subsection 
(b)(3)'' and inserting ``subsection (b)(1)''.
(c) Effective Date.--The amendments made by this section shall 
apply to sales and exchanges after the date of the enactment of this 
Act.
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