WASHINGTON, DC –
Congresswoman Nicole Malliotakis introduced H.R. 9064, the Nest Egg Protection Act, legislation to lower the capital gains tax burden for seniors selling their homes, allowing them to keep more of their hard-earned equity while helping bring more homes onto the market.
In New York’s 11th Congressional District, where the median home price is over $700,000, many seniors who purchased their homes decades ago may face significant capital gains tax liability if they choose to sell or downsize. Under current law, individuals may exclude up to $250,000 in capital gains from federal taxes on the sale of their primary residence, while joint filers may exclude up to $500,000—exclusion amounts that have not been increased since 1997. Any gain above those amounts is subject to capital gains tax.
As the national housing shortage continues to drive up prices and put homeownership out of reach for many young families, Congresswoman Malliotakis’ legislation would bring relief to qualifying seniors by allowing them to keep more of the equity they built over a lifetime and, should they choose to sell, help bring more homes onto the market for younger families and first-time homebuyers.
The Nest Egg Protection Act would temporarily increase the capital gains tax exclusion to $1 million for individuals and married couples aged 65 or older. To qualify, homeowners must have owned their primary residence for at least 25 years.
“Too many seniors on Staten Island and in Brooklyn who purchased their homes decades ago and built equity over a lifetime are now facing the possibility of a significant capital gains tax bill if they choose to sell or downsize,” said Congresswoman Nicole Malliotakis. “My legislation would expand the capital gains tax exemption to provide meaningful relief and allow seniors to keep more of their hard-earned equity. By removing this tax barrier that discourages seniors from selling when they want to, we can protect their nest egg while making the American Dream of homeownership more attainable for younger families and first-time homebuyers.”
“The Staten Island Board of REALTORS supports the Senior Home Sales Incentive Act as a common-sense approach to increasing housing inventory while helping seniors keep more of the equity they have earned over a lifetime. By reducing a major tax barrier to selling, this proposal could encourage more longtime homeowners to right-size their housing and create opportunities for the next generation of homebuyers,” said Sandy Krueger, CEO, Staten Island Board of REALTORS.
