Trump wants to 'unleash' America's housing market -- and is throwing his support behind MTG's big plan for US real estate [View all]

Typically, when you sell an asset for more than you paid, the profit is considered a capital gain — and subject to tax. With U.S. home prices having soared over the years, many homeowners looking to sell now find themselves in position to pay capital gains tax. But President Donald Trump is floating a plan to eliminate this tax specifically on home sales.

At a White House Q&A on July 22, a reporter asked Trump for his view on scrapping the tax to help “unleash” the housing market.

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Currently, if you’ve owned your primary home for at least two years and sell it with a capital gain, the IRS allows you to exclude up to $250,000 ($500,000 for joint filers) of the taxable gain. But that exclusion was set back in 1997 — when home prices were substantially lower.

Trump’s comment followed U.S. Rep. Marjorie Taylor Greene’s recent introduction of the “No Tax on Home Sales Act,” a bill that would eliminate federal capital gains taxes on the sale of primary residences altogether.

https://finance.yahoo.com/news/trump-wants-unleash-americas-housing-190900543.html

Tax breaks for real estate speculators would not lower home prices. There would be more people buying up homes without the intention of living in them therefore driving prices up even higher.