American Dream Act

Tax-free gain for seniors selling to first-time homebuyers. This bill would add section 121A to the tax code to exclude gain from the sale of real property when the seller is an individual (or both spouses on a joint return) who is age 65 or older and the buyer is a first-time homebuyer who will use the property as their principal residence. The exclusion would apply only to sales of $500,000 or less and would require the buyer to sign a statement under penalty of perjury at closing that they are a first-time homebuyer. It would apply to sales after December 31, 2026 and would not apply to sales after December 31, 2031. Section 121 would not apply to sales covered by section 121A.