U.S. Reps. Mike Kelly (R-PA) and Jimmy Panetta (D-CA) reintroduced Wednesday the More Homes on the Market Act, which addresses housing availability and affordability concerns.
Per the bill, the tax code would be amended to incentivize more homeowners to sell their houses and increase the market supply while also ensuring homeowners keep more of their investment when selling their homes by increasing the sales gain tax exclusion to $500,000 for single filers and $1 million for joint filers.
“As housing prices have increased, people who have chosen to downsize have been unfairly punished with massive tax burdens,” Kelly, Ways & Means Committee Subcommittee on Tax chairman, said. “After years of making improvements and investments into their homes, which is the largest purchase for most Americans, homeowners deserve to keep more of their hard-earned money during their golden years.”
Panetta said the legislation serves as a common-sense way to ensure that more families have access to owning a home.
“I’ve come across way too many people in the 19th Congressional District who want to sell their homes but can’t afford to due to the financial hit they’ll incur,” Panetta said. “That leads to fewer homes on the real estate market, housing shortages, and housing affordability issues throughout my district. My bipartisan More Homes on the Market Act would help remedy that problem by increasing the sales gain exclusion.”
National Association of REALTORS 2023 President Kenny Parcell said failing to index the exemption to inflation eroded its value significantly and caused a chain reaction compounding the shortage of available homes.
“This legislation nearly restores the exemption to its original intended value, and by indexing it for future inflation, it ensures this unfortunate situation never occurs again,” Parcell said.