79.1% of Homeowners in Hawaii Will Face a Hidden Home Equity Tax If They Sell
Briefly

In Hawaii, long-term homeowners confront significant tax liabilities when selling properties due to outdated capital gains exemptions. Over 79% exceed the $250,000 limit for single filers, and nearly half surpass the $500,000 cap for married couples, leading to potential federal tax bills in six figures. The capital gains exclusion, established in 1997, hasn't kept pace with skyrocketing home prices. If adjusted for inflation, the caps would be much higher. Hawaii's state capital gains tax also adds to the financial burden, discouraging many homeowners from selling even when it is financially prudent.
More than three-quarters of Hawaii's homeowners exceed the federal capital gains exemption due to significant real estate value appreciation, resulting in potential tax liabilities.
Hawaii homeowners are often subject to capital gains tax on real estate, reflecting years of ownership and routine appreciation, despite long-term possession of homes.
Read at SFGATE
[
|
]