Homeowners in Wyoming are facing substantial increases in property values, particularly in Jackson, Cheyenne, and Laramie. The National Association of REALTORS® reports that 27.6% of households may exceed the federal capital gains exemption, facing a hidden home equity tax. The federal exclusion limit set in 1997 remains unchanged despite inflation, leaving many homeowners with significant taxable gains. Average gains above the federal cap reach $241,596, with some facing liabilities exceeding $72,852. Wyoming has no state income tax, alleviating some burdens, but federal liabilities remain a concern for homeowners relying on equity for retirement or relocation.
A 1997 tax rule that never kept up with inflation means that homeowners in Wyoming risk exceeding the federal capital gains exemption, leading to the 'hidden home equity tax.'
The average gain above the $250,000 cap for homeowners in Wyoming is $241,596, with 8.3% exceeding the $500,000 mark and facing federal tax bills up to $72,852.
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