National Association of Realtors Supports Tax Credit for Home Sellers
The National Association of Realtors (NAR) is endorsing a tax policy that would grant a tax credit to home sellers who sell their homes to individuals intending to live in them. This initiative was discussed during the NAR’s monthly board of directors meeting on November 17th.
Eligibility for the Temporary Tax Credit
To qualify for the temporary tax credit, the home seller must have owned the property for an extended period and sell it to a buyer who will be the owner-occupant. This measure aims to address the national housing shortage and potentially bring as many as 640,000 homes to the market.
Addressing Capital Gains Taxes
In addition to the tax credit policy, the NAR supports a measure that would help with capital gains taxes. Some older homeowners hesitate to sell their homes due to the tax hit they would take on their profits. The proposed measure would consider the market value of the home and any amount exceeding that as taxable profit, rather than the purchase price cost and the profit made from that.
The More Homes on the Market Act
The More Homes on the Market Act, introduced in March 2023, aims to increase the capital gains threshold from $250,000 to $500,000. This change would alleviate some of the tax burden on those who have owned their homes for longer periods and then decide to sell. The bill has been referred to the House Committee on Ways and Means.
Changes in NAR Leadership
During the board meeting, the NAR also announced a change in its CEO. Bob Goldberg stepped down, and Nykia Wright took over the position on November 20th.
Supporting Homeownership through Tax Credits and Legislation
The NAR’s backing of a tax credit for home sellers selling to owner-occupants and the More Homes on the Market Act demonstrate the organization’s commitment to addressing the national housing shortage and supporting homeownership. These measures could significantly impact the real estate market by bringing more homes to the market and reducing the tax burden on homeowners looking to sell.
For more information on real estate and homeownership, visit Jessica Fulk Real Estate.
Orginal article: Link To Article – provided by Kansas City Realtors