Time to Heal Act

119 HR 7349 IH: Time to Heal Act U.S. House of Representatives 2026-02-04 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 2d Session H. R. 7349 IN THE HOUSE OF REPRESENTATIVES February 4, 2026 Mr. Barrett introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to give individuals with deceased spouses the same exclusion of gain from the sale of a principal residence as is allowed to married couples, regardless of how much time has passed since such death. 1. Short title This Act may be cited as the Time to Heal Act . 2. Special rule for certain home sales by individuals with deceased spouses (a) In general Section 121(b)(4) of the Internal Revenue Code of 1986 is amended to read as follows: (4) Special rule for certain sales by individuals with deceased spouses In the case of a sale or exchange of property by an individual whose spouse is deceased on the date of such sale or exchange, paragraph (1) shall be applied by substituting $500,000 for $250,000 if— (A) the requirements of paragraph (2)(A) were met immediately before such date of death, and (B) such individual has not remarried at any time after such date of death and before the close of the taxable year in which such sale occurs. . (b) Effective date The amendment made by this section shall apply to sales and exchanges made in taxable years beginning after the date of the enactment of this Act.