eliminating capital gains taxes <\/a>on home sales to help boost the housing market. Under current law, sellers can be taxed once profits exceed $250,000 for single filers or $500,000 for couples, depending on taxable income.<\/p>\n\u201cIf the Fed would lower the (interest) rates, we wouldn\u2019t even have to do that,\u201d he said in the Oval Office. \u201cBut we are thinking about no tax on capital gains on houses.\u201d<\/p>\n
Rep. Marjorie Taylor Greene, R-Ga., introduced a bill to eliminate capital gains taxes on sales of primary homes earlier this month, though it\u2019s unclear whether there will be momentum to pass it and if it could be financed after the \u201cbig, beautiful bill\u201d was signed into law.<\/p>\n
\u201cHomeowners who have lived in their homes for decades, especially seniors in places where values have surged, shouldn\u2019t be forced to stay put because of an IRS penalty,\u201d she said in a statement. \u201cMy bill unlocks that equity, helps fix the housing shortage, and supports long-term financial security for American families.\u201d<\/p>\n
Some industry groups have long advocated for reforms to the capital gains tax on home sales and increasing the caps. They argue that current caps, which have not been adjusted for inflation or increases to home values since 1997, are another incentive for homeowners to avoid selling.<\/p>\n
A report published by NAR earlier this year estimated that nearly one-third of homeowners already have enough equity to exceed the $250,000 cap, while another 10% may have enough to hit the top threshold. Those levels are expected to continue to climb as home values continue to appreciate amid the housing shortage.<\/p>\n
\u201cAt a time when many of these homeowners are considering downsizing or moving to a retirement facility, more and more are facing gains well in excess of the exclusions, which can leave them owing many thousands of dollars in taxes and reduce their ability to afford a new home,\u201d NAR\u2019s report says.<\/p>\n
Another analysis by The Budget Lab at Yale University released on Tuesday said eliminating the capital gains tax on home sales would predominantly benefit sellers who are older and wealthier.<\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON (TNND) \u2014 Home prices hit a record high last month even with a prolonged freeze on the…\n","protected":false},"author":2,"featured_media":34378,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[12832,28,28479,28480,12189,17492,5456,9007,112,5412],"class_list":{"0":"post-34377","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-affordability","9":"tag-business","10":"tag-capital-gains","11":"tag-equity","12":"tag-home-prices","13":"tag-homeownership","14":"tag-housing-market","15":"tag-interest-rates","16":"tag-markets","17":"tag-mortgage-rates"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/34377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=34377"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/34377\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/34378"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=34377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=34377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=34377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}