Is the Section 121 Exclusion going up anytime soon ?

[Steve Hungerford]

Hello,

Is the Section 121 250K/500K Capital gains exclusion likely to possibly go up ?


I was reading from the NAR website about a bill they are endorsing.

Before the House of Representatives left Washington on October 1 for the pre-election campaign season, a bipartisan bill of key importance to millions of homeowners was introduced by Representatives Jimmy Panetta (D-CA) and Mike Kelly (R-PA). Titled the “More Homes on the Market Act” (H.R. 9015(link is external)), the legislation would double the capital gains exclusion for sales of principal residences from $250,000 to $500,000 for single filers and from $500,000 to $1 million for married couples filing a joint tax return, and also index these amounts for future inflation. While this bill is unlikely to move in 2022, it is a great first step upon which we can build next year.

[Bill Exeter]

I have not seen any movement for further proposals at this time.  I doubt anything will move forward given the current make up of Congress, and the Biden Administration is not likely to approve anything that resembles a tax reduction.