Capital Gains Tax Locks Empty Nesters in Large Homes

Capital Gains Taxes: A Barrier to Downsizing for Older Homeowners - The episode explores the challenges faced by older homeowners like Duane Flemming and Chris Currie, who are hesitant to downsize due to potential capital gains taxes. The federal tax on home sales over $500,000, coupled with state taxes, can deter empty nesters from selling their large homes. This lock-in effect contributes to a housing market mismatch, with empty-nest baby boomers owning more large homes than millennial families. While discussions about tax reform are ongoing, experts question the impact of doubling the tax exclusion on housing affordability.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.