Potential End of Capital Gains Tax Could Benefit Homeowners Nationwide

Many older homeowners in the US are discouraged from selling their homes due to the capital gains tax, which may be contributing to a housing shortage. There is bipartisan support in Congress to reform or eliminate this tax to increase housing inventory, with some proposing to double the exemption thresholds. However, experts warn that such changes could have unintended consequences, including rising home prices and increased federal costs, and may disproportionately benefit wealthier Americans.