Bill To Double Capital Gains Tax Exclusion Picks Up Momentum in Congress

A bill to double the capital gains tax exclusion to curtail the penalty on home sellers is gaining traction in Washington, DC.The More Homes on the Market Act has attracted four additional co-sponsors before both chambers adjourned for the August recess.Three Democrats in the House threw their support behind the bill: Ryan Patrick of New York and Doris Matsui and Lateefah Simon of California. In the Senate, Republican David McCormick of Pennsylvania also co-sponsored the bill.There are now 151 House members and 23 Senators who support the bill. That includes 1 in 3 of the 435 voting members, plus several nonvoting members. The two versions are almost identical, except for one provision that relates to how to index the exclusion to inflation. Both chambers would need to agree on a final version of the bill.The National Association of Realtors® also champions the bill to change the tax scheme, because it could allow more people to sell their homes without incurring a punishing tax bill.Kevin Brown, president of NAR, lobbied for the law as he spoke to a panel in Congress in June. He and other NAR leaders argue the bill should be a major priority as both parties target an affordability...