Capital gains limits haven’t changed since 1997, yet 43.6% of California owner now exceed them, reducing their ability to sell and move into a new house using appreciation. Instead owners can be hit with paying high capital gains taxes. This graphic, provided by the National Association of Realtors (NAR), explains what purchasing power has done over time when figuring in the Consumer Price Index (CPI).
Let's talk if this is a concern and keeping you from selling. Although the government should look at upping the exclusion, there are ways to lower your tax right now. Call me if you have questions. Also talk with your tax preparer. They should be able to discuss your basis and taxable rate with you. If you want to read more on this subject download the NAR report.
