Making Homeownership Affordable Again Act

HR 7400, the "Making Homeownership Affordable Again Act," removes the current $250,000 ($500,000 for married couples) limit on tax-free profit when selling a primary residence and extends this exclusion to sales involving first-time homebuyers. It directly affects homeowners selling their current home and first-time homebuyers purchasing a home. The key provision eliminates the dollar cap on capital gains exclusion under tax code Section 121 and defines "first-time homebuyer" as someone without home ownership in the past three years. This policy change applies to home sales occurring after the bill's enactment.