H.R. 7400

119 HR 7400 IH: Making Homeownership Affordable Again Act
 U.S. House of Representatives
 2026-02-05
 text/xml
 EN
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 I  119th CONGRESS  2d Session  H. R. 7400  IN THE HOUSE OF REPRESENTATIVES   February 5, 2026   Ms. Mace  (for herself and  Ms. Boebert ) 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 exclude all gain from the sale of a principal residence or any residence which is sold to a first-time homebuyer, and for other purposes.
1.
Short title
This Act may be cited as the   Making Homeownership Affordable Again Act  .
2.
Full exclusion of gain from sale of principal residence or residence sold to first-time homebuyer
(a)
Elimination of dollar limitations on exclusion of gain
(1)
In general
 Section 121(b)  of the Internal Revenue Code of 1986 is amended—
(A)
by striking paragraphs (1), (2), and (4), and
(B)
by redesignating paragraphs (3) and (5) as paragraphs (1) and (2), respectively.
(2)
Conforming amendments
(A)
Section 121(c) of such Code is amended—
(i)
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
(ii)
in paragraph (2)(A)(ii), by striking  subsection (b)(3)  and inserting  subsection (b)(1) .
(B)
Section 121(d) of such Code is amended—
(i)
in paragraph (9)(A), by striking  in subsections (a) and (c)(1)(B)  and inserting  in subsection (a) , and
(ii)
in paragraph (12)(A), by striking  in subsections (a) and (c)(1)(B)  and inserting  in subsection (a) .
(b)
Allowance of exclusion of gain from sales to first-Time homebuyers
(1)
In general
Section 121(c)(2)(B) of such Code is amended—
(A)
by striking  exchange is by reason of  and inserting
exchange is—
(i)
by reason of
  ,
(B)
by striking  unforeseen circumstances.  and inserting  unforeseen circumstances, or , and
(C)
by adding at the end the following:
(ii)
to a first-time homebuyer.
  .
(2)
First-time homebuyer
Section 121(c) of such Code, as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph:
(3)
First-time homebuyer
For purposes of this subsection, the term  first-time homebuyer  means any individual if such individual (and if married, such individual’s spouse) had no present ownership interest in a principal residence during the 3-year period ending on the date of the sale or exchange of the property to which this subsection applies.
  .
(c)
Effective date
The amendments made by this section shall apply to sales and exchanges made after the date of the enactment of this Act.