More than half of Washington, D.C. homeowners risk hidden taxes on equity due to outdated capital gains exclusions from 1997. The exclusions are $250,000 for single filers and $500,000 for couples, but a staggering 51.6% of homeowners exceed these limits, reflecting increased home values. D.C. has a high capital gains tax rate of up to 10.75%. Many long-term homeowners experience rising tax bills on steadily appreciating homes, leading to significant tax burdens rather than tax-free equity realization.
In the nation's capital, more than half of all homeowners are now at risk of paying a hidden tax on the very equity they've spent decades building.
51.6% of Washington, D.C., homeowners have equity gains that exceed the $250,000 exemption available to single filers.
The capital gains tax exclusion lets homeowners avoid taxes on up to $250,000 of profit from the sale of a primary residence—or $500,000 for couples.
D.C. levies its own capital gains tax at rates that can reach 10.75%, among the highest in the nation.
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