Exclusive — Rep. Craig Goldman Introduces ‘Don’t Tax the American Dream Act’ to End Capital Gains Limits on Primary Residence Sales

Rep. Craig Goldman (R-TX) has introduced the Don’t Tax the American Dream Act, which would eliminate federal capital gains taxes on the sale of primary residences for homeowners who have lived in the property for at least two years by removing existing dollar limits on exclusions.

The legislation, introduced in the House this week, amends Section 121(b) of the Internal Revenue Code to “eliminate the dollar limitations on the exclusion of gain from sales of principal residences.” Under current law, homeowners may exclude up to $250,000 (individual) or $500,000 (married filing jointly) in capital gains if they have lived in the home for at least two of the past five years. Those caps, however, have not been adjusted since 1997.

According to the bill text,