Big news in real estate for home sellers! The National Association of Realtors (NAR) is pushing for a change that could benefit both homeowners and realtors alike. They are advocating to increase the capital gains tax exemption—from $250,000 to $500,000 for individuals and from $500,000 to $1 million for married couples—through the “More Homes on the Market Act.”
This change makes a lot of sense. Home values have skyrocketed over the years, but the capital gains exemption has stayed the same since 1997—when home prices were drastically lower. That means many homeowners are now facing higher tax burdens when selling simply because the law hasn’t kept up with the market.
NAR’s Proposal For Home Sellers
For those unfamiliar with how it works: If you’ve lived in your home for at least two of the last five years, you are currently exempt from paying capital gains tax on $250,000 of profit (if single) or $500,000 (if married). But with today’s home values, that exemption just doesn’t stretch as far as it used to.
A similar proposal was introduced in 2022 but didn’t pass. With a new Congress in place, there’s hope that this time, lawmakers will recognize the need for an update. This could be a huge win for homeowners looking to sell and move without being hit with unnecessary taxes.
Thinking about selling your home? Start by finding out exactly how much it’s worth with the free Home Market Value Calculator! With home values at record highs and potential tax changes on the horizon, now is the time to strategize. Get your free home valuation today, and let’s discuss the best plan to maximize your profit.
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Known for unparalleled market exposure, Liz Leeds strategically utilizes professional video and photography, combined with cutting-edge social media marketing, to ensure her listings capture the attention of discerning buyers.
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