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When you make a significant profit by selling your home, you may need to pay capital gains tax. But US Rep. Marjorie Taylor Green (R-GA) is looking to change that.
Green recently introduced “no tax on the Home Sales Act.” This is a bill that eliminates the federal capital gains tax on the sale of major residences.
“Families who work hard, build fairness and sell their homes should not be punished by a large tax bill,” Green said in a recent press release. “The capital gains tax on home sales is an outdated, unfair burden, especially in today’s housing market, where value has skyrocketed. My bill will fix that.”
Currently, if you sell your major homes with capital gains, the IRS can exclude up to $250,000 from your taxable income ($500,000 for joint filers). However, that exclusion recedes in 1997 – housing prices were significantly lower.
A recent analysis by the National Association of Realtors estimates that three homeowners (approximately 29 million households, of roughly 29 million) allow a single filer than the exemption from the federal capital gains tax.
Green told Realtor.com that he believes the bill will be “a great gift for Americans.”
The proposal is still in its early stages, but it has already attracted the attention of US President Donald Trump.
“We’re watching that,” Trump recently told reporters at Andrews’ joint base. “It could be a very big positive. I think it’s a huge incentive for a lot of people who really need money.”
The rise in home prices in recent years has made it much more difficult for future buyers to step into the ladder.
Over the past five years, the S&P CoreLogic Case-Shiller US National Home Price NSA Index has risen by more than 50%. A recent funding section survey also found that households earn more than $116,000 per year, as they can afford a typical US home.
Many experts say the supply shortage is the root cause. Federal Reserve Chairman Jerome Powell stressed last year at a press conference, saying, “The real problem with housing is that we have and we’re getting it off track that we don’t have enough homes.” He also pointed out the difficulty of finding and zoning land in desirable areas, asking, “Where are we going to get the supply?”
The story continues
A recent Zillow study shows that there is a shortage of 4.7 million homes in the US housing supply.
However, Green believes her bill will help “boost” the country’s housing supply by removing a capital gains tax hinder that could block homeowners from selling, according to a recent post from X.
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After all, the rise in home prices also reflects a steady march of inflation over time. As inflation rises, asset values also rise, reflecting higher costs of materials, labor and land. Rental income, on the other hand, tends to rise, providing landlords with a revenue stream adjusted with inflation.
As such, real estate has long been seen as an investment for those seeking to hedge inflation.
Buying an entire house may seem out of reach with today’s massive declines and high mortgage fees, but thanks to crowdfunding platforms like the ones that arrived, it’s easier than ever to start investing in real estate.
Supported by world-class investors like Jeff Bezos, upon arrival, you can invest in stocks in rental housing worth just $100, if you don’t have to mow your lawn, fix leaky faucets, or handle difficult tenants.
This process is simple. Browse carefully selected selections of homes that have been screened for gratitude and potential income. Once you find a property you like, choose the number of shares you want to buy, then sit back and start receiving a positive rental income distribution from your investment.
Another option is Homeshares, which will give certified investors access to the $35 trillion US home equity market. This is a space that has historically been an exclusive playground for institutional investors.
With a minimum of $25,000 investment, investors can directly get access to homes occupied by hundreds of owners in top U.S. cities through their home equity funds.
With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective way of handoffs to invest in residential properties occupying owners across the regional market.
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This article is for information only and should not be construed as advice. It is provided without warranty of any kind.
