14 | LIFE IN SOLERA | APRIL 2023 |
On March 1, The California
Association of Realtors responded to a
reintroduction of the "More Homes On
The Market Act" by 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.
This bill will provide necessary 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. The capital gains
exclusion was passed 25 years ago with no indexing for inflation and
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.
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.
The California Association of Realtors, more than 110 years old,
is one of the largest state trade organizations in the United States,
with more than 220,000 members dedicated to the advancement
of professionalism in real estate. C.A.R. is headquartered in Los
Angeles. Source: car.org March 2023
By Glenn and Nona Bradd, Broker Associates and Residents
Capital Gains Exclusion Raised
