In Louisiana, 9.8% of homeowners have amassed over $250,000 in equity from long-held homes, exceeding federal tax exclusions. The capital gains exclusion of $250,000 for individuals and $500,000 for couples has remained unchanged since 1997, despite a 260% increase in home values. Long-term homeowners discover that substantial profits are taxed as ordinary income in Louisiana, with rates reaching 4.25%. This situation leads to sizable tax bills on modest homes, particularly affecting retirees and families who have owned properties for years.
Louisiana homeowners face potential tax bills due to outdated federal caps on home equity, with 9.8% exceeding $250,000 gains subject to taxation.
The capital gains exclusion for home sales hasn’t changed since 1997, leaving many sellers vulnerable to taxes on their accumulated home equity.
Long-term homeowners in Louisiana, particularly retirees, are being taxed for profits accumulated in modest homes due to rising real estate values.
Louisiana capital gains tax rates can be as high as 4.25%, exacerbating the tax burden on homeowners selling properties that have appreciated in value.
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