Topline
President Donald Trump on Tuesday signaled support for legislation eliminating a capital gains tax on home sales, suggesting a reform on the tax policy—which has gone unchanged for decades—that a National Association of Realtors study found could impact millions of Americans.
Trump has said a bill eliminating the capital gains tax for home sales would be a "very big ... More
“We’re thinking about that,” Trump told reporters Tuesday in the Oval Office when asked about a proposal to end capital gains taxes on home purchases, though he also alluded to his latest push for the Federal Reserve to lower interest rates, saying, “If the Fed would lower the rates, we wouldn’t even have to do that.”
Under current tax law, single filers are exempt from paying taxes on capital gains of $250,000 or less for the sale of their primary residence, while married couples filing jointly are exempt on up to $500,000 of capital gains from the sale of their primary residence.
A recent study from the National Association of Realtors found 34% of homeowners—29 million—own enough equity in their home that they could exceed the $250,000 cap if they sell, while 10%—8 million—may already exceed the $500,000 cap.
This is a developing story.