Summary
Allows a person who sells their main home to a first-time buyer to get a tax credit for paying the buyer's costs, like a down payment or closing fees.
What problem does this solve?
Many people trying to buy their first home cannot afford the large upfront costs, like down payments and closing fees. This bill gives a tax credit to sellers who pay these costs for a first-time buyer, making it easier for new buyers to purchase a home.
What does this bill do?
Creates a new tax credit for home sellers
Allows a person who sells their main home to a first-time buyer to claim a tax credit if they pay for the buyer's acquisition costs, such as the down payment or closing fees.
Limits the amount of the tax credit
Caps the credit at either the amount of the buyer's costs paid by the seller or the amount of tax the seller would owe on the profit from the sale, whichever is less.
Defines a first-time homebuyer
Specifies that a first-time homebuyer is someone who has not owned a main home in the two years before the date of the sale.
Who does this affect?
- First-time homebuyers
- Home sellers
What is the real world impact?
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Helps first-time homebuyers
Creates a financial reason for sellers to help first-time buyers with upfront costs, making it easier for more people to own their first home.
When does this start?
The new tax credit would be available for tax years starting after December 31, 2026.