As a real estate broker I’ve seen countless homeowners postpone selling a home, not because they didn’t want to move, but because they couldn’t afford the federal tax consequences. One of the biggest reasons is that the capital gains exclusion on the sale of a primary residence hasn’t been updated since 1997 — nearly 30 years ago.
Today, a married couple can exclude up to $500,000 in capital gains when selling their primary residence, while single homeowners can exclude up to $250,000. Those numbers may have seemed generous nearly three decades ago, but they no longer reflect the reality of today’s housing market.
That’s why I believe Congress should seriously consider passing the More Homes on the Market Act (H.R. 1340), legislation that would double the exclusion to $1 million for married couples and $500,000 for single homeowners while indexing those amounts to inflation going forward. And every elected official in San Diego should come together, regardless of party affiliation, and collectively lobby Congress to pass this important legislation…