Section 121 exclusion limits

There has been talk of increasing it

But some think it will only help “the wealthy” so it hasn’t gone anywhere

quote:

---

$500K tax protection on cleared profits after a home sale every two years? Pretty much seems like a break for “the wealthy” to me.

---

A lot of “middle class” people are nearing right up to that number in a lot of places around this country.

I’m not really fired up about it either way because even if you are, the cap gains are only on the delta so probably not very much in any case, but it’s kind of ridiculous we have provisions that haven’t been indexed for inflation in years while we’ve experienced like 20%+ inflation

quote:

---

Only around 8% of U.S. homes have seen their value increase by $500,000 or more above their original purchase price

---

That’s a lot more than nearly 0% as it was when this number was created, which is my only point.

quote:

---

As a once every two years precept, not a chance.

---

I don’t disagree with this and frankly I’d be fine if they changed the timeline.

There’s just going to be a lot of people 60+ downsizing from their family homes in the next decade or so bumping up around that $500k number. Again, we likely talking about a few thousand in tax in any scenario so, as I said, not something I’m that passionate about.

But there are quite a few exemption numbers that haven’t been indexed to inflation in a LONG time, which was really the point I was trying to make