Trump floats ending capital gains tax on home sales
By lauraharris // 2025-07-24
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  • President Donald Trump signaled support for eliminating the federal capital gains tax on primary home sales, calling it a potential fix for housing market stagnation.
  • Under current law, homeowners can exclude up to $250,000 ($500,000 for couples) in home sale profits – caps that haven't changed since 1997 despite rising home values.
  • A National Association of Realtors study found 34 percent of homeowners now exceed the $250,000 exemption, discouraging many, especially seniors, from selling.
  • Trump supports Rep. Marjorie Taylor Greene's No Tax on Home Sales Act, which would fully eliminate capital gains taxes on primary residences to increase mobility and inventory.
  • The bill would apply only to primary residence owners, excluding investors and house flippers to ease housing shortages and boost affordability.
President Donald Trump has floated the idea of eliminating the capital gains tax on home sales – a move that could deliver significant tax relief to homeowners and shake up the housing market. Currently, under Section 121 of the Internal Revenue Code, individual homeowners can exclude up to $250,000 in profit from the sale of their primary residence from federal taxes. That exemption doubles to $500,000 for married couples filing jointly – limits that have remained unchanged since 1997, despite sharp increases in home values. A recent study by the National Association of Realtors (NAR) found that 34 percent of homeowners, roughly 29 million Americans, would exceed the $250,000 exemption if they sold today. For joint filers, about 10 percent or 8 million homeowners would breach the $500,000 cap. The rising number of households subject to capital gains taxes has led to what NAR describes as a "stay-put penalty." "This stagnation in housing turnover is rippling through the entire market, driving up costs and limiting opportunity – exactly the opposite of what public policy should be encouraging," said Shannon McGahn, NAR executive vice president and chief advocacy officer. "And it grows worse each month." In line with this, Trump said his administration is "thinking about" scrapping the capital gains tax on home sales in an interview with Real America's Voice reporter Brian Glenn and other reporters at the Oval Office on Tuesday, July 22. (Related: Financial dominoes tumble as commercial real estate sector IMPLODES.) "We are thinking about no tax on capital gains on houses. It's causing a problem for people who want to buy a home," Trump said, in response to a question about whether eliminating the tax would help "unleash" the housing market. "It would also unleash it just by lowering the interest rates. If the Fed would lower the rates, we wouldn't even have to do that. But we are thinking about no tax on capital gains on houses."

Trump backs Greene's push to eliminate capital gains tax on home sales

Trump supports a proposal introduced by Rep. Marjorie Taylor Greene (R-Ga.). Two weeks earlier, Green introduced the No Tax on Home Sales Act to eliminate capital gains taxes on primary home sales, encourage homeowners to move by removing a key financial disincentive, improve housing supply by making it easier to downsize or relocate and ease market pressures in high-demand areas by unlocking existing inventory. This bill would fully repeal the capital gains tax for individuals selling their primary homes – a major shift from the current system, which allows homeowners to exclude up to $250,000 in profit ($500,000 for married couples filing jointly). The legislation seeks to address growing frustration among long-term homeowners, particularly seniors, who are reluctant to sell due to the potential tax hit. "Homeowners who have lived in their homes for decades, especially seniors in places where values have surged, shouldn't be forced to stay put because of an IRS penalty," she said. "My bill unlocks that equity, helps fix the housing shortage and supports long-term financial security for American families." However, the bill explicitly excludes real estate investors and house flippers, limiting the tax benefit to individual sellers of primary residences. Learn more about the state of the American economy at MarketCrash.news. Watch financial expert Gregory Mannarino discuss the impending collapse of the real estate market.
This video is from the channel What Is Happening on Brighteon.com.

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Sources include: NYPost.com CBSNews.com Greene.house.gov CNBC.com Brighteon.com
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