A bipartisan push is gaining steam in Congress to modernize the outdated capital gains tax exclusion on home sales—an issue that’s keeping much-needed housing inventory off the market. The 28-year-old limit, unchanged since 1997, allows individuals to exclude up to $250,000 in gains from the sale of a primary residence, and $500,000 for married couples filing jointly. But home prices have nearly tripled since then, and the exclusion has never been adjusted for inflation. Now, lawmakers are taking action. Two bills are making headlines: the bipartisan More Homes on the Market Act and the newly introduced No Tax on Home Sales Act. Together, they signal growing momentum to update the law. Even President Donald Trump has weighed in, saying in a recent Oval Office conversation, “We are thinking about no tax on capital gains on houses.” Housing advocates say the outdated cap discourages longtime homeowners from selling, since many would face large tax bills on their gains. That’s fueling the current inventory crisis. The National Association of REALTORS® has been at the forefront of the reform effort, releasing data showing that nearly 29 million homeowners—about 34% of all current owners—could already be subject to capital gains taxes if they sell. That number is expected to rise significantly. Read more in Realtor Magazine here.
Source: Realtor Magazine, 7/24/2025