{"id":7570,"date":"2026-06-29T08:18:40","date_gmt":"2026-06-29T12:18:40","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=7570"},"modified":"2026-06-29T08:18:42","modified_gmt":"2026-06-29T12:18:42","slug":"the-nest-egg-protection-act-and-other-capital-gains-tax-news","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/the-nest-egg-protection-act-and-other-capital-gains-tax-news\/","title":{"rendered":"The Nest Egg Protection Act and Other Capital Gains Tax News"},"content":{"rendered":"\n<figure class=\"wp-block-image aligncenter size-full is-style-rounded is-style-rounded--1\"><img loading=\"lazy\" decoding=\"async\" width=\"1426\" height=\"535\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/06\/the-nest-egg-protection-act.webp\" alt=\"\" class=\"wp-image-7571\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/06\/the-nest-egg-protection-act.webp 1426w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/06\/the-nest-egg-protection-act-300x113.webp 300w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/06\/the-nest-egg-protection-act-1024x384.webp 1024w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/06\/the-nest-egg-protection-act-768x288.webp 768w\" sizes=\"auto, (max-width: 1426px) 100vw, 1426px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">This month, U.S. Rep. Nicole Malliotakis, a Republican from New York introduced H.R. 9064, the Nest Egg Protection Act, to the United States Congress. It\u2019s a capital gains tax relief proposal. It would double the current exclusion for eligible older deed holders who sell their homes for a profit. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The concept? People who acquired their deeds years ago can face significant taxes on home appreciation if they decide to downsize or move into a senior living community. Real estate inflation means home values have risen a good amount over the past two decades.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By reducing capital gains tax for seniors, the law could nudge some of these long-time deed holders to list their homes on the market. This, in turn, would help ease the country\u2019s shortage of available homes.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Home Sellers Can Keep $250K in Profits, Untaxed. That\u2019s Been the Rule for Three Decades.&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Under current law, individuals may exclude up to $250K (or half a million for joint filers) in capital gains from federal taxes when selling a primary residence. It\u2019s been this way since 1997.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Any profit over $250K per person is taxable capital gains.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Malliotakis bill would let seniors keep more of their built-up home equity if they sell at some point from 2027 through 2030. How much more? <a href=\"https:\/\/www.realtor.com\/news\/real-estate-news\/capital-gains-tax-exclusion-malliotakis-nest-egg-protection-act\/#:~:text=double%20the%20current%20max%2C\" target=\"_blank\" rel=\"noreferrer noopener\">Double<\/a> the current allowance. The Nest Egg Protection Act would temporarily allow $1 million to be kept, tax-free, by individuals and couples aged 65+ who\u2019ve owned their primary residence for 25 years or longer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By allowing seniors to keep more of their sale profits, Nicole Malliotakis has said, \u201cwe can protect their nest egg while making the American Dream of homeownership more attainable for younger families and first-time homebuyers.\u201d<\/p>\n\n\n\n<p class=\"has-accent-5-background-color has-background has-small-font-size wp-block-paragraph\" style=\"padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\"><strong><em>Good to know:&nbsp;The Internal Revenue Service may allow a partial capital gains tax break (\u201c<\/em><\/strong><a href=\"https:\/\/www.irs.gov\/publications\/p523#en_US_2025_publink100073096\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><em>partial exclusion of gain<\/em><\/strong><\/a><strong><em>\u201d) for a deed holder who must sell a primary home on account of a key life change.<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">When Will the Nest Egg Protection Act Become Law?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The idea of a \u201cSenior Home Sales Incentive\u201d is backed by real estate agent groups. They say taxing home sale profits \u201cpunishes\u201d long-time deed holders for moving. Many point out that the median U.S. home price was just under $130K back in 1997 when our current capital gains tax law was written. Today, those same homes sell for more than $400K.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, what\u2019s next for the Nest Egg Protection Act?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The bill has moved to the Ways and Means Committee in the U.S. House of Representatives. It will take some time before we can tell if it\u2019s likely to succeed. Co-sponsors would need to sign onto it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If it\u2019s successful, it will mark a substantial change in the federal tax code.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As the current tax code stands, a taxpayer must have held the deed and lived in the home as a primary residence for at least two of the five years prior to closing day. If so, the taxpayer may exclude $250K of sale profits from tax, per person.<\/p>\n\n\n\n<p class=\"has-accent-5-background-color has-background has-small-font-size wp-block-paragraph\" style=\"padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\"><a href=\"https:\/\/www.deeds.com\/articles\/reporting-a-home-sale-what-to-know-about-capital-gains-tax-even-if-youre-exempt\/\"><strong><em>What are capital gains<\/em><\/strong><\/a><strong><em>? Capital gains are profits netted from the sale of a taxpayer\u2019s home. To calculate capital gains, start with the sale price. Then subtract the original purchase price, closing costs, and the costs of substantial upgrades to the property.<\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Will the Nest Egg Protection Act Meet Opposition?<\/h2>\n\n\n\n<figure class=\"wp-block-image alignright size-full is-style-rounded is-style-rounded--2\"><img loading=\"lazy\" decoding=\"async\" width=\"528\" height=\"635\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/06\/when-will-the-nest-egg-protection-act-become-law.webp\" alt=\"\" class=\"wp-image-7572\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/06\/when-will-the-nest-egg-protection-act-become-law.webp 528w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/06\/when-will-the-nest-egg-protection-act-become-law-249x300.webp 249w\" sizes=\"auto, (max-width: 528px) 100vw, 528px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">It might sound like a classic win-win. The proposed law is supposed to help seniors sell without losing a lot of their appreciation value, make new listings available, and free up deeds for younger generations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In New York, California, and other states where homes are pricey, tax relief on profits could prompt hesitant sellers to release their homes into the market for waiting buyers. It\u2019s no secret that deed holders who\u2019d owe thousands or even tens of thousands of dollars in federal capital gain tax hesitate to sell if they don\u2019t have to. Some would prefer to leave their homes in their wills than sell and lose a chunk out of their equity. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But some commentators point out that the people who will get the most from a higher capital gains tax exclusion are those whose home sale profits are over half a million dollars. Such sellers are in the minority. They are not the people who need to keep the most in their pockets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So it\u2019s really no surprise that analysts watching the U.S. budget have expressed concerns about this bill. Some are warning that this kind of tax reform reduces government revenue without helping the average taxpayer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Higher capital gains tax exemptions would mainly help older, higher-income households in coastal cities, they say. Protecting these sellers\u2019 profits, they argue, won\u2019t free up many deeds in places where the average buyer is looking.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Aren\u2019t Capital Gains Tax Bills Already Being Considered?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. Democrats and Republicans alike have talked a lot about updating the capital gains tax allowance. These other pending bills would change U.S. capital gains tax rules:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>More Homes on the Market Act<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Nicole Malliotakis of New York is also a cosponsor of the More Homes on the Market Act\u2014another bid to double the current home sale capital gains exclusion for solo taxpayers and couples.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The More Homes bill, H.R. 1340, would establish future cost of inflation adjustments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The bipartisan bill was first introduced in September 2022. It has stalled, despite being reintroduced multiple times.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>No Tax on Home Sales Act<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">H.R. 4327, the No Tax on Home Sales Act, has been introduced twice since last July.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Proposed by Marjorie Taylor Green of Georgia, it would simply do away with capital gains tax on sales of primary homes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The American Dream Act<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Introduced in January 2026, this bill has some unique provisions. It would kick in when the current deed holder, aged 65+, sells to a first-time home buyer. Rental and vacation homes could get exclusions up to $500K\u2014not just primary residences.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As always, we\u2019ll keep our readers informed about these legislative proposals. Meanwhile, if you&#8217;re thinking about selling your home, check with your tax pro or an estate planning attorney for personalized tax guidance. &nbsp;<\/p>\n\n\n\n<div class=\"wp-block-group has-accent-5-background-color has-background has-small-font-size is-layout-flow wp-block-group-is-layout-flow\" style=\"padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\">\n<p class=\"wp-block-paragraph\"><strong>Supporting References<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tristan Navera for <em>Realtor.com<\/em>\u00ae: <a href=\"https:\/\/www.realtor.com\/news\/real-estate-news\/capital-gains-tax-testimony-affordability\/\" target=\"_blank\" rel=\"noreferrer noopener\">Capital Gains Tax Discourages Homeowners From Selling, Senate Hears<\/a> (published Jun. 23, 2026 by the National Association of REALTORS\u00ae).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Representative Nicole Malliotakis: <a href=\"http:\/\/malliotakis.house.gov\/media\/press-releases\/malliotakis-introduces-legislation-cut-capital-gains-taxes-seniors-selling\" target=\"_blank\" rel=\"noreferrer noopener\">Press Release \u2013 Malliotakis Introduces Legislation to Cut Capital Gains Taxes for Seniors Selling Their Homes<\/a> (Jun. 1, 2026).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Neil Pierson for <em>HousingWire<\/em>: <a href=\"https:\/\/www.housingwire.com\/articles\/malliotakis-nest-egg-protection-act-capital-gains-exclusion-senior-homeowners\/\" target=\"_blank\" rel=\"noreferrer noopener\">Nest Egg Protection Act Would Raise Capital Gains Tax Exclusion for Senior Home Sellers<\/a> (posted Jun. 5, 2026 by HW Media, LLC).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Jeff Lazerson for <em>MortgageGrader.com<\/em>, in <em>Los Angeles Daily News<\/em>: <a href=\"https:\/\/www.dailynews.com\/2026\/06\/18\/lawmakers-push-for-higher-capital-gains-exemptions-with-an-eye-on-home-sales\/\" target=\"_blank\" rel=\"noreferrer noopener\">Lawmakers Push for Higher Capital Gains Exemptions, With an Eye on Home Sales<\/a> (posted by Skyline MediaNews Group on Jun. 18, 2026).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Kelley R. Taylor for <em>Kiplinger.com<\/em>: <a href=\"https:\/\/www.kiplinger.com\/taxes\/bill-proposes-one-million-capital-gains-tax-exclusion-for-those-over-65\" target=\"_blank\" rel=\"noreferrer noopener\">Capital Gains Tax New Bill Proposes $1 Million Capital Gains Tax Exclusion for Those Over Age 65<\/a> (posted by Future U.S. Inc., New York, Jun. 2026).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And as linked.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Image credits: <a href=\"http:\/\/www.nyphotographic.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Nick Youngson<\/a>\u00a0(<a href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/3.0\/\" target=\"_blank\" rel=\"noreferrer noopener\">CC BY-SA 3.0<\/a>),\u00a0via Pix4free; and <a href=\"https:\/\/www.pexels.com\/photo\/creative-finance-concept-with-egg-and-money-30726177\/\" target=\"_blank\" rel=\"noreferrer noopener\">Marco Palumbo<\/a>, via Pexels\/Canva.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>This month, U.S. Rep. Nicole Malliotakis, a Republican from New York introduced H.R. 9064, the Nest Egg Protection Act, to the United States Congress. It\u2019s a capital gains tax relief proposal. It would double the current exclusion for eligible older deed holders who sell their homes for a profit. &nbsp; The concept? People who acquired [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7572,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[131],"tags":[3792,268,3789,467,3787,445,2301,3793,3791,3788,3790,1928,3168,2232],"class_list":["post-7570","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-american-dream-act","tag-capital-gains-tax","tag-capital-gains-tax-exclusion","tag-first-time-homebuyers","tag-home-sale-tax-exclusion","tag-home-selling","tag-housing-inventory","tag-irs-home-sale-exclusion","tag-more-homes-on-the-market-act","tag-nest-egg-protection-act","tag-no-tax-on-home-sales-act","tag-real-estate-taxes","tag-senior-home-sellers","tag-senior-homeowners"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Nest Egg Protection Act: Senior Capital Gains Tax Break<\/title>\n<meta name=\"description\" content=\"The Nest Egg Protection Act would raise the home sale capital gains exclusion for some seniors. 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