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Trump Considers Eliminating Capital Gains Tax on Home Sales

Advocates say lifting fixed gain caps could free up decades-old housing inventory; the plan now hinges on Congressional approval, facing deficit concerns.

In California, which has some of highest priced homes in the United States, as well as other states with pricey real estate, homeowners are likely to benefit should Congress ever decide to kill the capital gain tax on home sales.
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Overview

  • President Trump told reporters in the Oval Office on July 22 that his administration is weighing a proposal to remove capital gains taxes on primary home sales.
  • Republican Rep. Marjorie Taylor Greene’s No Tax on Home Sales Act, introduced July 10, seeks to repeal the $250,000/$500,000 exclusion caps that have not changed since 1997.
  • A National Association of Realtors study estimates 29 million homeowners could exceed the current gain limits, a dynamic cited by supporters to boost market turnover.
  • Opponents caution that eliminating the tax would primarily benefit higher-value sellers and could add trillions to federal deficits without offsetting revenue.
  • Trump linked the potential housing tax cut to Federal Reserve rate policy, suggesting rate reductions could achieve similar market stimulus without new legislation.