Housing inventory and short-term homeowners may be heavily impacted by proposed changes to laws excluding home sales up to $500,000 from capital gains taxes.
U.S. House and Senate tax plans would change the residency requirement to five of the past eight years, rather than the current requirement of living in one's home two of the last five years. Zillow's data says that in a more affordable city like Dallas, median homeowners would pay roughly $7,537 in capital gains taxes after four years.
If eligibility rules for excluding the sale of a home from capital gains taxes are changed from requiring living in your home for two of the past five years, to five of the past eight, selling the median U.S. home after four years of ownership would mean $2,363 in taxes, from $0 currently.
