12/18/2025
I sure hope the capital gains limits are increased soon! I work with many seniors and empty nesters who have owned their homes for years and amassed quite a bit of equity. Be sure to keep good records of investments you make in your home to reduce any taxes you could owe when you sell your home.
Nearly 29 million U.S. households already exceed the capital gains tax exclusion, a growing factor keeping homes off the market. In many metros, longtime owners are delaying sales to avoid a large tax bill, adding to inventory shortages beyond high rates and affordability.
The issue is back in Washington, where lawmakers are considering reforms to the primary-home capital gains exclusion, still capped at $250,000 for single filers and $500,000 for couples, unchanged since 1997, despite home values rising more than 260%.
