💨 Abstract

In 2025, former President Trump suggested eliminating the capital gains tax on home sales, a move that could save some sellers money but its impact on the housing market is uncertain. Currently, the capital gains tax mostly affects high-income sellers or those in areas with significant home appreciation. Critics argue that this change won't improve housing affordability, as fewer than 8% of home sales exceed the capital gains exclusion limits.

Courtesy: WTOP Staff