Latest news with #MoreHomesontheMarketAct
Yahoo
10-07-2025
- Business
- Yahoo
Arizona homeowners are bumping up to capital gains limits. Here's what to know
Nearly half of Arizona homeowners have over $250,000 in home equity, potentially triggering capital gains taxes upon sale. A 1997 federal capital gains rule raised limits for what homeowners can earn on a sale without paying extra taxes. Joint filers can pocket $500,000 before paying capital gains. The National Association of Realtors, which did a study on how many homeowners could have to pay more taxes due to higher stakes in their houses, is backing bipartisan legislation to raise the limits. And it would be a big increase that could save some homeowners a lot of money. Rising home prices have more homeowners edging above the existing tax limits. The capital gains tax, which can be as high as 20% depending on a homeowner's income, may be deterring some sellers and contributing to a slowdown in the housing market, according to housing analysts. About 10% of Arizona homeowners have exceeded the $500,000 equity cap. Nationally, 34% of homeowners, or approximately 29 million, could already have enough equity in their homes to exceed the $250,000 cap, and over 10%, or around 8 million, could have more than $500,000, according to NAR. Bipartisan federal legislation called the More Homes on the Market Act has been introduced. The legislation would double the capital gains limits. The capital gains exemption can only be used every two years on primary residences. There are ways to defer capital gains that involve reinvesting. Accountants and financial advisors can offer advice. This article originally appeared on Arizona Republic: More Ariz. homeowners bumping up to capital gains limits. What to know
Yahoo
24-02-2025
- Business
- Yahoo
Lawmakers again push bill to incentivize home sales
(WKBN) – Pending legislation could lessen the tax burden for property owners who want to sell and increase inventory in the housing market. Congressman Mike Kelly, R-Pa., announced Monday that he and other bi-partisan lawmakers have reintroduced the More Homes on the Market Act that would take a second look at capital gains tax when it comes to selling a house. The bill would raise the capital gains tax exclusion on the sale of a primary residence from $250,000 to $500,000 for single filers and $1 million for joint filers. The increase could incentivize seniors and others to sell their homes, therefore, increasing housing inventory. Kelly said the exclusions have not been addressed since 1997 and have never been adjusted for inflation. 'As housing prices have increased, people who have chosen to downsize have been unfairly punished with massive tax burdens,' Kelly said in a news release. 'Homeowners deserve to keep more of their hard-earned money during their golden years.' A 2023 report found that 8% of home sellers made more than $500,000 in profit on their home sales compared to just 1.3% in 2003. Kelly said if the exclusion had been indexed to inflation, it would stand at approximately $500,000 for single filers and $1 million for joint filers today. Co-sponsor Rep. Suzan DelBene, D-Wash., said the legislation would help to loosen the market overall. 'I regularly hear from people in my district and across the country who want to sell their homes but can't afford to because of the significant tax bill they will incur. This means fewer homes on the market, which pushes home prices and puts homeownership out of reach for many Americans,' DelBene said. 'This legislation would provide meaningful tax relief by doubling the capital gains tax exclusion, allowing homeowners to keep more of their investments. This will decrease pressure on the housing market nationwide and help address affordability.' The bill was first introduced in 2023 and was referred to the House Committee. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
