09/02/2026
We often think of "Capital Gains Tax" as something real estate investors have to pay, but it can impact primary resident home owners as well. In fact, the current exclusion threshold was set in 1997 and hasn't changed since then despite big changes in home values.
Current code taxes profits from home sales at up to 20%, if they exceed the limit of $250,000 for single people and $500,000 for joint filers.
Many (roughly one-third) home owners would face a tax penalty if they sold today. Do you think that might keep some homes off the market?
The More Homes On the Market Act, if passed, would double the exclusion threshold. ($500k for single owners/$1 million for joint) This in turn, could/should result in an INCREASE to homes available.
If inventory increases, opportunity for buyers increases.