MA Among States To Benefit Most If Capital Gains Tax Eliminated, New Report Says

President Donald Trump has floated the idea of eliminating the capital gains tax — a move that would help many Massachusetts homeowners, according to a report from real estate site Redfin.

Massachusetts ranks No. 3 in the country in terms of homeowners that would benefit from the elimination of the tax, which is levied on those who sell homes that have increased in value by $250,000 or more.

Across the country, more than one in four homes have gained at least $250,000 in value since the last time they were purchased, while 8 percent have gained more than $500,000, according to Redfin.

These homeowners would stand to benefit if the tax on capital gains from a home sale is eliminated. U.S. Rep. Marjorie Taylor Greene of Georgia introduced a bill that nixes the tax, CNN reported. Trump reportedly said he's "thinking about" it.

Of the homes which have increased at least $250,000 in value, the median gain is $384,606 — representing a potential tax liability of $20,104, according to Redfin.

The typical U.S. home has gained $144,543 in value since it was purchased. These owners would not owe any capital gains tax if they sold today.

The biggest beneficiaries of the potential change in tax liability are "homeowners who have already built considerable wealth through their property, and they mainly come from states where home prices are high and have increased quickly," Redfin noted.

The top five states that would benefit from the elimination of the capital gains tax are California, Hawaii, Massachusetts, Washington, and New Jersey.

In Massachusetts, 58.4 percent of homes have gained more than $250,000 in value since they were purchased. Another 20.8 percent have gained more than $500,000 since they were purchased.

"The impact of the tax break would also not be felt nationwide — it would disproportionately benefit wealthier homeowners from coastal states like California," Redfin Chief Economist Daryl Fairweather said.

Check out the full report from Redfin.

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