Time to Heal Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7349 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7349

  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.


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                    IN THE HOUSE OF REPRESENTATIVES

                            February 4, 2026

 Mr. Barrett introduced the following bill; which was referred to the 
                      Committee on Ways and Means

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                                 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Time to Heal Act''.

SEC. 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.
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