Summary
Lawmakers are discussing potential changes to the capital gains tax that affects homeowners when they sell their properties. These changes could motivate more people to sell their homes, potentially increasing the number of homes available on the market. However, some challenges persist in gaining enough support for these proposals in Congress.
Key Facts
- Congress is considering changes to the capital gains tax related to selling homes.
- The current capital gains tax limits were set in 1997 and have not been adjusted for inflation.
- Capital gains tax applies to profits made on property sales; there's a home-sale exclusion of up to $250,000 for singles and $500,000 for married couples.
- The More Homes on the Market Act proposes doubling these exclusion limits and adjusting them for inflation.
- The bill currently has 94 cosponsors in Congress.
- Proposals include possibly removing the capital gains tax entirely.
- Redfin estimates a seven percent increase in home sale listings if the tax is removed.
- There is no clear sign of these proposals passing quickly through Congress.
