US HB7051

Sellers age 65 or older can exclude capital gains from federal income tax when selling real property to first-time homebuyers, provided the sale price does not exceed $500,000

First-time homebuyer is defined as an individual (or spouse) who has never had an ownership interest in a principal residence prior to the sale

Closing documents must include a statement under penalty of perjury from the buyer certifying first-time homebuyer status and intent to use the property as a principal residence

The exclusion replaces (does not stack with) the existing Section 121 principal residence gain exclusion for qualifying sales

Applies to sales after December 31, 2026, and terminates for sales after December 31, 2031