"Federal capital gains law allows homeowners to exclude up to $250,000 in profits from the sale of a primary home- or $500,000 for married couples filing jointly."
"In Wisconsin, the average gain above the $250,000 cap is $89,566. For the 2.6% of households who exceed the $500,000 threshold, the average taxable gain is $119,474."
"A tax cap that time forgot: these exemptions were established in 1997 and haven't changed since, while home prices across the U.S. have climbed more than 260%."
"For longtime homeowners, especially those on fixed incomes, the combined federal and state tax burden can add up fast as they face increasing taxable home equity."
Seventeen point seven percent of homeowners in Wisconsin exceed the federal capital gains tax exemption, risking a financial surprise when selling. Long-term ownership in a moderate market has pushed many homeowners into taxable territory. Federal law allows exclusions of $250,000 for single and $500,000 for married sellers, established in 1997, while home values have increased by over 260%. Average gains above the exemption in Wisconsin reach $89,566, leading to significant tax bills for many homeowners, particularly retirees on fixed incomes.
Read at SFGATE
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