Home values have been rapidly increasing, resulting in potential capital gains taxes for homeowners when they sell their properties.

– Since 1997, homes that generate less than $500,000 in profit have been exempt from federal capital gains taxes.
– An increased number of home sales now exceed the exemption cap, resulting in potential tax liabilities.
– Homeowners are choosing to age in place rather than sell due to high capital gains taxes.
– Inherited properties have a reset cost basis at market value, potentially allowing heirs to sell tax-free after the original homeowner’s death.
– The exemption limit has not been adjusted for inflation since 1997, causing more homes to be subject to capital gains taxes.
– Proposed legislation aims to raise the capital gains exemption limit on homes and adjust it for inflation.

You can read this full article at: https://papersourceonline.com/capital-gains-taxes-trap-home-sellers-worst-hit-states-revealed/(subscription required)

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