Monday Market Update: Capital Gains In The News
Recent articles talk about who is advocating to re-write the rules.
When Benjamin Franklin famously said that “Nothing is certain except death and taxes…”, he probably had no idea how much that statement would be applied over the years. That quote is a harsh reality for many homeowners who have built significant equity and who would be subject to a large tax bill if they sold their homes.
The current capital gains exclusion on the sale of a home is $250,000 for individuals and $500,00 for couples – figures that have not changed since 1997. But since then, home values have climbed over 260%. Realtor.com® reports that 29 million homeowners today would be exposed to hefty capital gains taxes if they sold their homes. By the year 2030, a projected nearly 60% of homeowners would be impacted. The result is a continuation of what’s been happening – more homeowners staying put, more wealth being stored in home equity and fewer homes hitting a market desperate for inventory.
A few recent reads have summarized the current proposals that would exclude, reduce or modify the current capital gains law.
Realtor.com® | Homeowners Face Hidden Home Equity Tax: 3 Big Proposals Could Rewrite the Rules
This article summarizes three proposals: the No Tax on Home Sales Act, the More Homes on the Market Act & the idea of ‘indexing for inflation.’
Written by Michael Rauber, the manager of advocacy communications at the National Association of REALTORS®, this article expands upon why NAR® is supporting the More Homes on the Market Act and how building equity has become more of a ‘trap’ than an opportunity.
Kiplinger | No Capital Gains Tax on Home Sales Coming Soon? What You Need to Know
This article summarizes the No Tax on Home Sales Act proposed by Marjorie Taylor Greene, who would benefit from it and who would ‘miss out.’
*Please note that the information above is for informational purposes only and is not intended to serve as financial advice or political opinion. We simply wish to share what has been proposed and what you may see in the headlines so that you can educate yourself accordingly. Please always consult with your own financial advisor and tax professional to understand the implications of taxes, homes sales and staying or selling for your own situation.
Warm regards,
Bobbi
Bobbi Decker
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Broker Associate, Bobbi Decker & Associates
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www.bobbidecker.com
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