President Donald Trump has confirmed that he is considering abolishing the capital gains tax on houses.
“We’re thinking about that,” Trump said on July 22 when asked if the administration is considering removing the tax to improve the U.S. housing market.
The president added that the Federal Reserve would “unleash” the real estate market by lowering interest rates.
“If the Fed would lower the [interest] rates, we wouldn’t even have to do that,” he said during a meeting with Philippine President Ferdinand “Bongbong” Marcos Jr.
“But we are thinking about no capital gains tax on houses.”
The U.S. government imposes a capital gains tax on the sale of homes. Tax rates for long-term capital gains—residential properties held for more than a year—depend on income and range from zero percent to 20 percent. Capital gains on homes owned for less than a year are taxed at the same rate as your ordinary income….