Trump Floats End to Capital Gains Tax on Home Sales: What It Means for Homeowners
Trump Floats End to Capital Gains Tax on Home Sales: What It Means for Homeowners
President Donald Trump has indicated he is considering a significant change to federal tax policy, suggesting the potential elimination of capital gains taxes on the sale of homes. In recent comments to the press, Trump stated, “We are thinking about… no tax on capital gains on houses,” sparking immediate discussion among lawmakers and homeowners.
The announcement follows closely on the heels of a bill introduced by Rep. Marjorie Taylor Greene earlier this month, which calls for the complete removal of capital gains tax for primary residence sales. This potential policy shift could have substantial implications for the housing market and millions of Americans.
Currently, homeowners who sell their primary residence and realize a significant profit may be subject to capital gains tax. While existing rules allow exemptions of up to $250,000 for single filers and $500,000 for married couples filing jointly—provided they’ve lived in the home for at least 24 months in the past five years—gains exceeding these thresholds are taxed. A full elimination would remove this tax burden entirely for primary residences, potentially freeing up equity and encouraging more home sales.
Industry analysis suggests a growing number of homeowners, particularly those who have owned their homes for decades or live in areas with high appreciation, are finding themselves subject to these taxes as the exemption thresholds, set in 1997, have not kept pace with inflation. Organizations like the National Association of Realtors have advocated for increasing these caps, arguing the current system discourages sales and impacts affordability. While the full scope of such a policy change remains to be seen, its consideration marks a notable development in federal housing and tax policy discussions.
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