Time to Heal Act
Sponsored By: Representative Barrett, Tom [R-MI-7]
Introduced
Summary
Allows surviving spouses to use the $500,000 principal residence gain exclusion. This bill would amend Internal Revenue Code Section 121(b)(4) so that an individual whose spouse is deceased on the date of a home sale and who met the ownership and use tests immediately before that death could exclude up to $500,000 of gain, rather than the $250,000 cap that normally applies to single filers. The rule applies only if the surviving spouse has not remarried before the close of the taxable year and would apply to sales in taxable years beginning after enactment.
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Higher home-sale tax break for survivors
You would be able to exclude up to $500,000 of gain when you sell your main home if your spouse was dead on the sale date. To qualify, you must have met the ownership and use rules immediately before your spouse's date of death. You must not have remarried before the end of the tax year when you sell. This would apply to sales and exchanges in taxable years beginning after the date of enactment.
Sponsors & CoSponsors
Sponsor
Barrett, Tom [R-MI-7]
MI • R
Cosponsors
Rep. Panetta, Jimmy [D-CA-19]
CA • D
Sponsored 2/11/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov