This boomer couple would be hit with $700,000 tax bill if they sold their house
Briefly

Joel and Kathryn Friedman, aged 71, are eager to downsize from their large Southern California home but are held back by an estimated $700,000 capital gains tax. The current tax structure, unchanged since 1997, taxes home sale profits above $500,000 for married couples, impacting more sellers as housing prices rise. This situation has led to a shortage of family-sized homes, particularly in high-cost regions. Bipartisan efforts are underway to reform the capital gains tax, raising hopes for potential relief. The Friedmans listed their house for $4.5 million in May amid this uncertain environment.
"There are a million reasons why we'd like to move, but we're not because the tax is just burdensome," Joel said.
Since 1997, home sale profits over $500,000 (for married couples) and $250,000 (for single filers) have been subject to a capital gains tax of up to 20%.
Housing economists say that dynamic has exacerbated a shortage of family-sized homes on the market, especially in expensive places like California.
Growing desperate to move, the Friedmans finally put their house on the market in May for nearly $4.5 million.
Read at Business Insider
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