Have You Heard Of “The More Homes On The Market” Act?
The CALIFORNIA ASSOCIATION OF REALTORS (CAR) recently issued the following statement in response to the “More Homes on the Market Act,” reintroduced on March 1st by House Representatives Jimmy Panetta (D-CA) and Mike Kelly (R-PA). 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®.
“For working Californians, a home is their biggest and most important investment. However, because the capital gains exclusion was passed 25 years ago with no indexing for inflation, fewer and fewer families have been able to downsize and access the equity built up in their homes. This has resulted in fewer homes being available for younger and first-time homebuyers to move into, which has driven up demand and home prices even more.”
The National Association of REALTORS® estimates that in California, as many as 95 percent of single homeowners and 68 percent of married homeowners who purchased their homes before 2000 could face capital gains tax if they sold their home this year.
This would double the amount that a home owner could exclude when they sell, and in view of the increase in home prices since this capital gain exclusion law was first introduced, it should be obvious that the time for raising it (and making it index linked to inflation) is well overdue.
Without a clear demonstration that this bill needs to pass, it will likely be ignored. Call your Congress Representative now and lets get it passed!
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