Rep. Nicole Malliotakis is pitching a new way for longtime Staten Island and Bay Ridge homeowners to cash out without handing such a big slice to the IRS. Her Nest Egg Protection Act aims to sharply raise how much profit older sellers can shield from capital gains taxes when they unload a primary home they have held for decades.
The idea, according to a press release from her office, is straightforward: let retirees keep more of the equity they have built and, at the same time, nudge long-frozen homes back onto the market so younger buyers have a shot at them. Malliotakis is framing the bill as both a break for seniors and a local housing inventory fix, Representative Nicole Malliotakis said.
Her office says the Nest Egg Protection Act would temporarily boost the capital gains exclusion on home sales to $1 million for qualifying sellers who are at least 65 years old. To qualify, homeowners would need to have owned their primary residence for at least 25 years. The goal is to reduce the tax hit that can keep long-time owners from selling and to make it easier for older homeowners to right-size without feeling penalized, according to Representative Nicole Malliotakis.
Bill Status And Mechanics
On Capitol Hill, the measure is listed as H.R. 9064. It was introduced in late May and sent to the House Ways and Means Committee, which gets first crack at tax legislation. As summarized by LegiScan, the bill would amend the Internal Revenue Code to temporarily increase the capital gains exclusion for qualifying seniors who sell a principal residence during a qualifying year.
How It Changes Existing Law
Right now, federal law lets many homeowners exclude up to $250,000 of gain on the sale of a main home, or up to $500,000 for most married couples filing jointly. Those dollar caps have been stuck in place since 1997 and have not been adjusted for inflation. The IRS lays out the Section 121 exclusion rules and the basic tests for claiming it, including the requirement that a seller generally must have owned and used the home as a main residence for at least two out of the five years before the sale, according to the IRS.
Local Reaction
On the neighborhood level, Malliotakis has been selling the proposal as a win-win: seniors hang on to more of their nest egg and first-time buyers finally see more listings. Local real estate groups have largely welcomed that pitch. As reported by the Brooklyn Eagle, industry voices say the higher exclusion could free up much-needed housing inventory by removing a tax hurdle that keeps long-time owners from putting their homes on the market.
Support And Hurdles
Malliotakis' release highlights endorsements from the Staten Island Board of REALTORS and several local brokers, who argue that the proposed change would make it easier for long-time homeowners to finally decide to sell. At the same time, the plan is still only a proposal. To become law, it will need to clear the Ways and Means Committee and then win broader support in both chambers of Congress. The sponsor's office has described the larger exclusion as a temporary and targeted move, per Representative Nicole Malliotakis.
What To Watch Next
From here, H.R. 9064 will be tracked through the committee process and could be folded into a larger tax or housing package before any floor vote. Until something actually passes, it is just an idea with a bill number. Seniors weighing a sale are being urged to talk with a tax professional before making major financial moves, since any future break would depend on the final language of the bill and whether it ultimately clears Congress.
