"Right now, according to the Internal Revenue Code, a single person pays no tax on the first $250,000 in gain from a home sale, while married people can exclude $500,000. All told, about 90% of home sales generate less than $500,000 in gains, so the overwhelming majority of sellers already owe no tax. The minority who would see new benefits from the proposed tax change are those with more than $500,000 in appreciation, typically owners of high-priced homes in hot real estate markets."
"Supporters of the idea, introduced by U.S. Rep. Marjorie Taylor Greene as the No Tax on Home Sales Act in July, say it would benefit working families by eliminating all taxes on the sales of family homes. But most Americans who sell their homes already do so tax-free. And the households that would gain most under Trump's proposals are those with the most valuable real estate."
A proposal to make home sales tax-free would eliminate capital gains taxes on residential real estate sales. Current law allows single taxpayers to exclude $250,000 and married couples $500,000 in gains, so roughly 90% of home sales already avoid tax. New benefits would flow mainly to sellers with more than $500,000 in appreciation, typically owners of high-priced homes in hot markets; one estimate found an average benefit of $100,000 per qualifying seller. Homeownership rates differ by race, with about 44% of Black Americans and 74% of white Americans owning homes, and single women face additional barriers. Such measures would tend to shift wealth upward.
Read at Fast Company
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