51.6% of Homeowners in Washington, D.C., Will Face a Hidden Home Equity Tax If They Sell
Briefly

More than half of Washington, D.C. homeowners risk hidden taxes on equity due to outdated capital gains exclusions from 1997.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.
Read at SFGATE
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