The National Association of Realtors (NAR) has announced its support for a new tax policy aimed at incentivizing home sellers to sell their properties to individuals who intend to live in them. In a recent board of directors meeting held on November 17, the NAR discussed the proposal to introduce a temporary tax credit for eligible sellers.
To qualify for the tax credit, sellers must have owned the property for an extended period and sell it to an owner-occupant. By encouraging more sales to prospective homeowners, the NAR hopes to alleviate the national housing shortage and bring approximately 640,000 homes to the market.
Furthermore, the NAR is advocating for a policy change regarding capital gains taxes, which often deter older homeowners from selling their properties. The proposed measure would calculate taxable profit based on the market value of the home, rather than the purchase price and subsequent profit. This would help to reduce the tax burden on individuals who have owned their homes for longer durations and are considering selling.
In support of this, the More Homes on the Market Act was introduced in March 2023. If passed, the act would increase the capital gains threshold from $250,000 to $500,000, providing additional tax relief for long-term homeowners who choose to sell. Currently, the bill has been referred to the House Committee on Ways and Means.
At the recent board meeting, the NAR also announced a change in leadership with the appointment of Nykia Wright as the new CEO, succeeding Bob Goldberg effective November 20.
Q: How does the proposed tax policy benefit home sellers?
A: The tax policy introduces a temporary tax credit for eligible sellers who sell their homes to owner-occupants, providing an incentive for increased sales.
Q: Why is the NAR advocating for changes in capital gains taxes?
A: Older homeowners often refrain from selling their properties due to the tax implications. The NAR supports amendments that would calculate taxable profit based on the market value of the home, reducing the burden on sellers.
Q: What is the More Homes on the Market Act?
A: The More Homes on the Market Act is a proposed bill that aims to increase the capital gains threshold from $250,000 to $500,000, providing additional tax relief for long-time homeowners who decide to sell their properties.
Q: Who is the new CEO of the NAR?
A: Nykia Wright was appointed as the new CEO of the NAR, succeeding Bob Goldberg as of November 20.