General Discussion

walkingman

(10,371 posts) Tue Jan 13, 2026, 11:12 AM Yesterday

Time to raise the Home Sale exclusion

My DW and I are not wealthy. We have lived in our current residence for 37 years and need to move to a place that requires less maintenance and is more senior friendly.

After decades of rising property values, the capital gains exclusion for home sales of their primary residences, no longer reflects the current market and keeps many unable to take advantage of their equity, especially Seniors. The $250,000/$500,000 thresholds set in 1997 haven’t kept pace with today’s market.

This should be a bi-partisian issue and something that would help all homeowners. Section 121 of the Internal Revenue Code, part of the Taxpayer Relief Act of 1997, allows homeowners to exclude up to $250,000 of capital gains ($500,000 for married couples filing jointly) when selling their primary residence. To qualify, sellers must have owned and used the home as their primary residence for at least two out of the last five years before the sale.

Adjusted for inflation, the 1997 thresholds are approximately $475,000 for singles and $950,000 for married couples in 2024 dollars. Many homeowners now exceed these limits, even after accounting for improvements and selling costs.

Please contact your Represenatives to push for this issue.

4 replies

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Highlight:

Time to raise the Home Sale exclusion (Original Post) walkingman Yesterday OP

I'm not in favor of your proposal. MaryMagdaline Yesterday #1

I am not against paying my fair share of taxes. walkingman Yesterday #3

This is why you see many seniors hanging onto Johonny Yesterday #2

Do Dems support the working class? walkingman Yesterday #4

MaryMagdaline

(7,939 posts)

1. I'm not in favor of your proposal.

Reply to walkingman (Original post)

Tue Jan 13, 2026, 11:22 AM

Yesterday

My generation (Gen Jones)has already received a windfall as a result of rising home costs, at the expense of younger buyers. I do not agree with depleting federal taxes in order to further enrich our generation.
Taxes will definitely hurt when I downsize - I’m a widow and the exemption is $250,000.00 for a single person rather than $500,000.00 if I were still married. I feel that my tax burden is fair in this instance.
Curious as to how others feel and definitely mindful of others’ situations.

walkingman

(10,371 posts)

3. I am not against paying my fair share of taxes.

Reply to MaryMagdaline (Reply #1)

Tue Jan 13, 2026, 11:53 AM

Yesterday

I have paid them my entire life as most people do that work. Our issue is that as seniors the cost of everything has risen and although $500K sounds like a lot, have you seen the cost of long-term care?

As I said we are not wealthy but because we have a pension we will never qualify for "government help" as seniors, so why should we be punished financially because we are middle class.

The tax code in the US leans towards the very wealthy, excludes corporations, and the middle class is "stuck in the middle".

Johonny

(25,542 posts)

2. This is why you see many seniors hanging onto

Reply to walkingman (Original post)

Tue Jan 13, 2026, 11:53 AM

Yesterday

Homes as the family can get better equity from the home following death.

walkingman

(10,371 posts)

4. Do Dems support the working class?

Reply to walkingman (Original post)

Tue Jan 13, 2026, 04:48 PM

Yesterday

I'm constantly hearing...."The Dems no longer support the working class". Democrats seem to focus on social programs, education, and worker protections and Republicans emphasize lower taxes, less regulation, and fiscal responsibility. Immigration or social values seem to be an issue for both.

The majority of Americans who vote are likely homeowners, as about two-thirds (around 65-66%) of U.S. households own their homes, and homeowners tend to vote at higher rates than renters.

By the Numbers (Pew Research Center - Income-Based Definition)

Middle-Income: Around 51-52% of U.S. adults (2022-2023).
Lower-Income: Roughly 28-29%.
Upper-Income: About 19-21%.

So middle-class voters like us who have always supported diversity, equity, and inclusion don't seem to get much attention. If you exclude those cultural issues and look at the majority of people that work everyday, own a home, raise a family, pay our taxes...we represent the majority of voters in America. I see programs designed to help the wealthy, those designed to help the poor - homeownership represents the majority of American voters. We need help. We don't have options or much representation in Congress and we vote.

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