Reforming Home Sale Taxes to Support Senior Homeowners and Boost the Housing Market

Joel and Kathryn Friedman, a retired couple in California, are hesitant to sell their large home due to potential $700,000 in capital gains taxes, which has delayed their downsizing plans. The current tax threshold has not changed since 1997, leading to more homeowners being taxed as home prices rise. Proposed bipartisan reforms aim to increase the tax exemption, potentially encouraging more home sales and easing housing shortages, especially in expensive markets like California.