Capital Gains Taxes on Principal Residences are Freezing the Housing Market

Time for a tax change incentivizing home sales by people with substantial gains on their home.

Highlights:

·      Many homeowners are locked into their principal residence due to a high capital gain bill should they sell their home.

·      A well designed tax incentive would encourage people with substantial house equity to sell their principal residence and realize a capital gain.

·      A reduction in the capital gains tax rate on proceeds used fr…