I 
119TH CONGRESS 
2D SESSION 
H. R. 7051 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
gains on the sale of real property to first-time homebuyers by individuals 
who have attained age 65. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 14, 2026 
Mr. MCGUIRE (for himself, Mr. BARRETT, Mr. STAUBER, Mr. STUTZMAN, Mr. 
SCHMIDT, Mr. MACKENZIE, Mr. HAMADEH of Arizona, Mrs. MILLER- 
MEEKS, and Mrs. CAMMACK) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to exclude 
from gross income gains on the sale of real property 
to first-time homebuyers by individuals who have at-
tained age 65. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘American Dream Act’’. 
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SEC. 2. EXCLUSION FROM GROSS INCOME OF GAINS ON 
THE SALE OF REAL PROPERTY TO FIRST- 
TIME HOMEBUYERS BY INDIVIDUALS WHO 
HAVE ATTAINED AGE 65. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 121 the following new section: 
‘‘SEC. 121A. EXCLUSION OF GAIN FROM SALE OF REAL 
PROPERTY TO FIRST-TIME HOMEBUYERS BY 
INDIVIDUALS WHO HAVE ATTAINED AGE 65. 
‘‘(a) IN GENERAL.—In the case of an individual, 
gross income shall not include gain from the sale of real 
property if— 
‘‘(1) the taxpayer (either spouse in the case of 
a joint return) has attained age 65 as of the date 
of such sale, 
‘‘(2) such sale is to a first-time homebuyer for 
use as such first-time homebuyer’s principal resi-
dence (within the meaning of section 121), 
‘‘(3) the price at which such real property is 
sold does not exceed $500,000, and 
‘‘(4) the closing documents with respect to such 
sale include a statement by the buyer made under 
penalty of perjury that such buyer is a first-time 
homebuyer and is purchasing such property for use 
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as such buyer’s principal residence (within the 
meaning of section 121). 
‘‘(b) FIRST-TIME HOMEBUYER.—For purposes of 
this section, the term ‘first-time homebuyer’ means any 
individual if such individual, or such individual’s spouse, 
has not had a present ownership interest in a principal 
residence (within the meaning of section 121) at any time 
prior to the date of the sale to which this section applies. 
‘‘(c) COORDINATION WITH EXCLUSION
OF GAIN 
FROM SALE
OF PRINCIPAL RESIDENCE.—Section 121 
shall not apply to any sale to which subsection (a) applies. 
‘‘(d) TERMINATION.—This section shall not apply to 
any sale after December 31, 2031.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of such Code 
is amended by inserting after the item relating to section 
121 the following new item: 
‘‘Sec. 121A. Exclusion of gain from sale of real property to first-time home-
buyers by individuals who have attained age 65.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales after December 31, 2026, 
in taxable years ending after such date. 
Æ 
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