Lindsey Graham: “I along with Senator Lincoln am proud to sponsor this bill to allow members of the military service, Foreign Service…”

“I along with Senator Lincoln am proud to sponsor this bill to allow members of the military service, Foreign Service, and employees serving on assignment abroad to qualify for the same tax relief on the profit generated when they sell their main residence as other Americans. This bill does not create a new tax benefit, it merely modifies current law to exclude the time living abroad when calculating the number of years the homeowner has lived in their primary residence. This bill will treat members of the military, foreign service officers and civilians living abroad fairly, by treating them like all other Americans. The Taxpayer Relief Act of 1997 gives taxpayers who sell their principal residence a much-needed tax break. Prior to the 1997 act, taxpayers received a one-time exclusion on the profit they made when they sold their principal residence, but the taxpayer had to be at least 55 years old and live in the residence for two of the five years preceding the sale. This provision primarily benefited older Americans, while not providing any relief to younger taxpayers and their families. The 1997 act corrected this flaw. Now, a taxpayer who sells his or her principal residence is not taxed on the first $250,000 of profit from the sale. Joint files are not taxed on the first $500,000 of profit they make from selling their principal residence.”