Senior Spotlight: School’s Out – Is A Capital Gains Recess On The Way?
Learn about the proposed ‘Nest Egg Protection Act.’
Happy Almost Summer! As we celebrate the next season and maybe you have some trips coming up, is a capital gains vacation in the works? A proposal for a capital gains tax exclusion has been introduced - with interesting timing since we just talked about this topic in our Monday blog! See what’s in the news now and where we go from here below.
What We Know
- In a Press Release published June 1, 2026, “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.”
- As explained by Realtor.com®, “Nest Egg Protection Act," H.R. 9064, proposes raising the capital gains tax exclusion for people over 65 who sell their homes from 2027 through 2030. The act would raise that exclusion on profits of up to $1 million, double the current max, provided they're selling a home they've owned for at least 25 years.”
- The intention of the proposal is to combat the lock-in effect many seniors face. It encourages retirees to downsize and enables them to preserve more equity, while freeing up inventory for younger buyers.
- The Yale Budget Lab research indicates that only 10-15% of homeowners have enough gains to exceed the current federal exclusion limits of $250,00/person or $500,000/married couples.
What’s Next
- The bill has been sponsored and proposed by Congresswoman Nicole Malliotakis.
- Kiplinger states that “The legislation has been referred to the House Ways and Means Committee and will likely face a lengthy path through Congress. But if eventually approved, it would represent one of the most significant targeted tax benefits for homeowners in recent years.”
- Critics believe that the measure disproportionately benefits wealthier homeowners in higher value markets. Advocates say that it allows seniors to move closer to family or into community or assisted living situations that better fit their needs without sacrificing so much of their ‘nest egg’ to taxes.
Resources Used:
Boomers Selling Longtime Homes Would Get Tax Holiday on Their Profits Under New Bill (Realtor.com®)
New Bill Proposes $1 Million Capital Gains Tax Exclusion for Those Over Age 65 (Kiplinger)
We’ll be following the status and progress of this proposal and encourage you to do the same! It will be interesting to see the reactions and discussions that follow in the weeks and months to come.
All my best,
Bobbi
Bobbi Decker
DRE#00607999
Broker Associate
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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