New Tax Plan Currently Being Discussed in Washington, DC.

I don' t have a crystal ball that is working but there is a new tax bill in Congress.  I understand that is is a tough bill to read with numerous mark-outs in the margins but from what I have heard.  This new plan would require homeowners to own and use a personal residence for 5 (five) of the previous 8 (eight) years. Also, this break would phase out for singles earning above $250,000 and couples making in excess of $500,000. Under this new plan (should it pass) owners of primary residences will need to hold their properties for 3 three more years to avoid capital gains. This will result in less inventory on the market.

Furthermore, and I doubt our lovely government thoughts about this side effect, military families that move every 2 or 3 years would likely have to resort to renting properties as any equity would be lost in paying the capital gains. Fortunately there is current discussion about an exemption if relocation is due to employment, however, until the proposed bill is finalized anything is possible.

If you have Sellers that are on the fence about selling their current primary residence, you may want to inform them of this impending bill. They still have time to sell their current primary residence before the law possibly changes.