Real Estate
Bill to Raise Capital Gain Exclusion Will Increase Housing Inventory
We don't have a "housing shortage", we have a shortage of available homes for sale.
The catch-all phrase used to characterize the lack of available homes for sale is a "housing shortage". This is a misnomer and an excuse for the State of California to force draconian requirements for local municipalities to approve new high-density housing developments in locations not designed for the overload of infrastructure and water supplies to support the growth.
The most viable solution to quickly and efficiently create more available housing for sale is to modify the capital gain tax exclusion for homeowners and allow them to sell and move on without the exposure to excessive income tax consequences.
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today issued the following statement in response to the “More Homes on the Market Act,” reintroduced today by House Representatives Jimmy Panetta (D-CA) and Mike Kelly (R-PA).
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The bipartisan bill increases the capital gain exclusion amounts on the sale of a principal residence to $500,000 for single filers and $1 million for joint filers and indexes the exclusion for inflation.
“California REALTORS® thank Congressman Panetta for reintroducing the ‘More Homes on the Market Act.’ This bill will provide necessary tax relief for California homeowners, particularly senior citizens, who have been unable to move because of the tax burden that could result if they were to sell,” said C.A.R. President Jennifer Branchini, a Bay Area REALTOR®.
