Trump floats 'no tax on capital gains' for home sales. Here's who could benefit
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President Donald Trump has floated ending capital gains taxes on home sales. If enacted, here's a breakdown of who could benefit from the measure.
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real estate
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July 23, 2025
06:23 PM
CNBC
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President Donald Trump on Tuesday said the administration is considering ending capital gains taxes on sales
Moreover, Under current law, sellers can face capital gains taxes once fits exceed $250,000 for single filers or $500,000 for married couples filing jointly (fascinating analysis)
Since 1997, those thresholds have never been indexed for inflation, and more sellers are subject to capital gains as perty values rise
Moreover, Moreover, President Donald Trump meets with Philippine President Ferdinand Marcos Jr. (not pictured), in the Oval Office at the White House in Washington, D
However, , July 22, 2025
Kent Nishimura | ReutersPresident Donald Trump said the administration is considering ending capital gains taxes on sales to boost the housing market
When asked the idea in the Oval Office on Tuesday, Trump told reporters, "we're thinking that (something worth watching). ""If the Fed would lower the [interest] rates, we wouldn't even have to do that," he said
However, "But we are thinking no tax on capital gains on houses
Additionally, "Under current law, sellers can face capital gains taxes once fits exceed $250,000 for single filers or $500,000 for married couples filing jointly
More from Personal Finance:Trump's 'big beautiful bill' created a new student loan plan: What to knowAffordable Care Act health plan enrollees could face 'subsidy cliff' in 2026Trump's 'big beautiful bill' includes these 2025 tax changesTrump's s come roughly two weeks after Rep
Marjorie Taylor Greene, R-Ga. , introduced the No Tax on Sales Act, to eliminate capital gains taxes on primary sales
Additionally, "owners who have d in their s for decades, especially seniors in places where values have surged, shouldn't be forced to stay put because of an IRS penalty," she said in a statement. "My bill unlocks that equity, helps fix the housing shortage, and supports long-term financial security for American families. "However, the posal could be costly, and it's un whether the measure has broad congressional support, experts say. "I think this could generate some interest, but they're more ly to raise the exemption than they are to eliminate the tax entirely," Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center, told CNBC
Additionally, Who pays capital gains on salesEnacted in 1997, the $250,000 and $500,000 capital gains exclusions — which apply to primary sales — have never been indexed for inflation
Since 1997, the median sales price has climbed by nearly 190%, from $145,000 to roughly $417,000, as of the first quarter of 2025, according to Federal Reserve data
As values rise, certain individuals, such as longtime owners, are more ly to exceed the $250,000 and $500,000 thresholds, which could trigger capital gains taxes, experts say
When sales fits exceed $250,000 or $500,000, capital gains are levied at 0%, 15% or 20%, depending on taxable income, in light of current trends
Additionally, Excess fit above those thresholds can also trigger the so-called net investment income tax of 3
Nevertheless, 8%, depending on other investment earnings, according to the IRS
Some 29 million owners (34%) could exceed the $250,000 threshold for single filers, and 8 million (10%) could be above the $500,000 limit for married couples filing jointly, according to a 2025 study from the National Association of Realtors, or NAR
In contrast, The organization has long advocated for capital gains reform for sales
Furthermore, Owners in states Washington, California, Utah and Massachusetts are more ly to be impacted, according to NAR data
Watch now3:4603:46Opening 401(k)s to private : Here's what to knowSquawk BoxHowever, many owners don't realize it's possible to reduce your sales fit by adding so-called capital imvements, such as renovations to the original purchase price, experts say
If capital gains taxes for sales were eliminated, the measure would primarily benefit sellers who are older and wealthier, according to an analysis released Tuesday from The Budget Lab at Yale University (remarkable data).
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