Blog > How H.R.1321 Could Help Unlock Inventory for Home Sellers
🏡 The More Homes on the Market Act: What It Could Mean for Sellers
Date: May 4, 2025
Have you ever wondered how much it might cost you to sell your home—beyond the usual fees? One of the biggest surprises for many homeowners is something called capital gains tax. This is a federal and state tax on the profit you make when you sell your home for more than you paid for it. Here’s the general rule: if you’re single and make more than $250,000 in profit, or married and make over $500,000, you could owe capital gains tax on the amount above those limits. And we’re not talking small change—combined, the tax rate can reach up to 30% or more in some cases. In California, where home values have jumped over the years, this hits a lot of sellers harder than expected.
There’s a bill working its way through Congress that could make a huge difference for homeowners thinking about selling and it’s called the More Homes on the Market Act (H.R.1321).
Let’s break it down in plain English.
What’s the Big Deal?
If passed, this bill would increase the capital gains exclusion on the sale of your primary home. That means you could keep more of your profit tax-free when you sell.
- Current Limit: $250,000 (single) or $500,000 (married)
- Proposed Limit: $500,000 (single) or $1 million (married)
🏘️ Why It Matters
Many homeowners, especially those who’ve lived in their homes for decades, hesitate to sell because they’d be hit with a huge capital gains tax bill. This bill could change that — and put more homes on the market.
For buyers, more homes = more options (and hopefully less bidding war stress).
🛤️ Where It Stands
The bill was introduced in March 2023 and is currently in the House Ways and Means Committee. That means:
- ✅ It’s been proposed
- 📋 It’s under review in committee
- 🚧 Not yet voted on by the House or Senate
- ✍️ Not law… yet
🌟 What the Future Could Look Like
If this passes, we could see a real shift in the market:
- Longtime homeowners finally ready to cash out and move on
- More inventory, especially in tight markets like LA
- Potential tax relief for sellers who've built major equity
📸 Real Estate Tip:
If you're thinking about selling soon, this is something to watch. You don’t want to miss out on potential savings especially if you’ve been in your home a long time and prices have appreciated a lot.
📞 Let's Talk Strategy
If you’re considering a move — now or in the near future — let’s chat. Whether this law passes or not, there are smart ways to prep, market, and sell your home for top dollar while staying tax-aware.
—
Christian Buitron
Brokered by Radius | LoanDesk
DRE 01951904 | NMLS 2565372
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