"According to the National Association of REALTORS®, 35.6% of Vermont homeowners exceed the federal capital gains tax exclusion, leading to a possible 'hidden home equity tax' upon selling."
"Under current federal law, homeowners can exclude up to $250,000 in profit from the sale of a primary residence, a limit that hasn't changed in nearly three decades despite home prices surging over 260% nationwide."
"In Vermont, homeowners exceeding the $250,000 limit have an average appreciation of $143,908, while those surpassing the $500,000 threshold face average gains of $192,692."
"Vermont taxes capital gains as regular income with rates reaching up to 8.75%, compounding the financial burden on home sellers who have built equity."
Home values in Vermont have sharply increased, especially in Burlington, Montpelier, and Stowe. Currently, 35.6% of homeowners exceed the federal capital gains tax exclusion, which could lead to significant tax liabilities when selling homes. Under federal law, homeowners can exclude a limited profit from sales, which hasn't changed since 1997. In Vermont, the average gain above this limit is significant, with a state tax on capital gains amplifying the financial impact. Vermont ranks high among Northeast states for homeowners affected by these outdated rules.
Read at SFGATE
Unable to calculate read time
Collection
[
|
...
]