The industry will adjust.
Simply put, a bridge loan will be used to absorb any revenues made from the sale. Immediately prior to, concurrently or consecutively, the purchase of another home will consummate. Hence no revenues. The closing attorneys will make more now. They’ll love it.
But, if you’re selling and not re-investing you will surely have to find another way to avoid the tax.
I got one....get a 100%LTV and default. Technically not a sale when it is foreclosed.