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When you sell your home and make a sizable profit, you’re likely required to pay capital gains tax. But U.S. Rep. Marjorie Taylor Greene (R-GA) is aiming to change that.
Greene recently introduced the “No Tax on Home Sales Act,” a bill that would eliminate federal capital gains tax on the sale of primary residences.
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“Families who work hard, build equity, and sell their homes should not be punished with massive tax bills,” Greene said in a recent press release. “The capital gains tax on home sales is an outdated, unfair burden — especially in today’s housing market, where values have skyrocketed. My bill fixes that.”
Currently, if you sell your primary home with a capital gain, the IRS allows you to exclude up to $250,000 ($500,000 for joint filers) from your taxable income. But that exclusion was set back in 1997 — when home prices were substantially lower.
A recent analysis by the National Association of Realtors estimates that about one in three homeowners — roughly 29 million households — have accumulated more equity than the federal capital gains tax exclusion allows for single filers.
Greene told Realtor.com she believes the bill would be “a great gift for the American people.”
Although the proposal is still in its early stages, it has already caught the attention of U.S. President Donald Trump.
“We’re looking at that,” Trump recently told reporters at Joint Base Andrews. “It could be a very big positive. I think it’s going to be a great incentive for a lot of people that really need money.”
America’s housing crisis
Soaring home prices in recent years have made it substantially harder for prospective buyers to get a foot on the ladder.
In just the last five years, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index has climbed by more than 50%. And a recent Bankrate study found that to afford a typical home in the U.S., a household would now need an annual income exceeding $116,000.
Many experts say a lack of supply is the root cause. Federal Reserve Chair Jerome Powell highlighted this last year at a press conference, remarking, “The real issue with housing is that we have had and are on track to continue to have, not enough housing.” He also pointed to the difficulty of finding and zoning land in desirable areas, asking, “Where are we going to get the supply?”
A recent Zillow study indicates a shortfall of 4.7 million homes in America’s housing supply.
But Greene believes her bill could help “boost” the nation’s housing supply by removing the capital gains tax obstacle that might discourage homeowners from selling, according to a recent post on X.
Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
Getting on the real estate ladder — starting with $100
At the end of the day, the rise in home prices also reflects the steady march of inflation over time. When inflation goes up, property values often climb as well, reflecting the higher costs of materials, labor and land. Meanwhile, rental income tends to rise, providing landlords with a revenue stream that adjusts with inflation.
That’s why real estate has long been considered a go-to investment for those looking to hedge against inflation.
While purchasing an entire home can seem out of reach with today’s hefty down payments and high mortgage rates, it’s now easier than ever to start investing in real estate thanks to crowdfunding platforms like Arrived.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving positive rental income distributions from your investment.
Another option is Homeshares, which gives accredited investors access to the $35 trillion U.S. home equity market — a space that’s historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
