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Congressman Fitzgerald introduces bill to eliminate capital gains taxes on home sales, updating outdated exclusion limits.
On January 16, 2026, Congressman Scott Fitzgerald (R-WI) introduced the Middle Class Home Tax Elimination Act, proposing to eliminate capital gains taxes on the sale of primary residences.
The bill aims to modernize outdated 1997 exclusion limits of $250,000 for singles and $500,000 for married couples, which have not kept pace with inflation or rising home prices.
Fitzgerald argues the change would encourage older homeowners to downsize, increase housing supply, and support middle-class stability.
The proposal aligns with similar legislation introduced by Texas Republican Craig Goldman, who also seeks to eliminate capital gains taxes on home sales for those who have lived in their homes for at least two years.
Both bills aim to address housing shortages and reduce tax burdens on homeowners, though the full text of Fitzgerald’s bill was not yet available on the congressional website as of January 16.
El congresista Fitzgerald presenta un proyecto de ley para eliminar los impuestos sobre ganancias de capital en las ventas de viviendas, actualizando los límites de exclusión obsoletos.