A Texas congressman has introduced a bill to eliminate all capital gains taxes on primary residence home sales, if the homeowner has lived at the property for at least two years.
Rep. Craig Goldman, R-Texas, introduced the “Don’t Tax the American Dream Act,” aiming to incentivize older homeowners to sell their homes and downsize; increase the housing supply across the nation; and repeal costly taxes on American homeowners.
Goldman got the idea for the bill from a constituent, he told The Daily Signal.
“He and his wife sold their house, and were questioning me why they had to pay such incredible, costly capital gains on that home sell,” Goldman said.
“And I said, I don’t know, but I’ll find out. But when I saw the ridiculousness that we all pay capital gains on home sales, this is the reason why we filed the bill.”
Currently, homeowners can be exempted from capital gains taxes on up to $250,000 of their gain for single tax filers, and up to $500,000 for married couples filing jointly.
However, Goldman’s bill would remove the caps entirely and allow for home sales without any capital gains tax bills.
