Is it time to say goodbye to capital gains taxes on your home?
Is it time to say goodbye to capital gains taxes on your home?
The biggest personal finance story (in my humble opinion!) this week is news that President Donald Trump is considering removing capital gains taxes on home sales.
"If the Fed would lower the rates, we wouldn't even have to do that," Trump told reporters in the Oval Office. "But we are thinking about no tax on capital gains on houses."
Under current law, homeowners can exclude up to $250,000 (single filers) or $500,000 (joint filers) in gains from the sale of a primary residence. These thresholds haven't changed since 1997, opens new tab!
A National Association of Realtors study, opens new tab found that 34% of homeowners (29 million) could already have enough equity in their homes to exceed the $250,000 cap, and more than 10% (8 million) could have enough to surpass the $500,000 threshold.
Congress recently passed legislation that made permanent broad tax cuts passed in 2017 during Trump's first presidency. The bill also fulfilled Trump's campaign promises to include new tax breaks for tips, overtime pay, seniors and auto loans.
Here is a look at who could gain, opens new tab from an end to capital gains taxes on home sales.
What do you think about eliminating capital gains taxes on your home? Would you be more likely to sell your home? Write to me, and let me know your thoughts.
Have you noticed lower prices at the pump lately?
U.S. gasoline prices could fall below $3 a gallon this summer for the first time in over four years as a stretch of bad weather dampens fuel demand and a jump in imports fills inventories.
Gasoline prices are in a lull, a boon for Americans traveling this summer. Consumers endured record prices at the pumps after Russia's 2022 invasion of Ukraine upended energy markets.
Summer is typically the peak season for gasoline consumption in the U.S., but demand is lower this year. More fuel-efficient vehicles on the road and post-pandemic changes in driving patterns – particularly remote work – are expected to permanently reduce U.S. gasoline consumption from its peak in 2018.
How will lower gas prices impact your driving habits?
Coke's shift to cane sugar would be expensive, hurt US farmers
Goldman, BNY team up to launch tokens tied to money market funds
Trump executive order to help open up 401(k)s to private markets, opens new tab
Delta plans to use AI in ticket pricing draws fire from US lawmakers
Luxury heavyweights struggle to shake off shopper fatigue
What is behind the latest rally in meme stocks?
How Americans handle late-career layoffs, opens new tab
Preserve capital, don't swing for the fences, portfolio manager says
Big Alcohol prepares to fight back as buzzy cannabis drinks steal sales
ARE YOU HOLDING TOO MUCH TECH?
Is your portfolio bursting with technology stocks?
Equity investors are probably overweighted in technology, given the strong performance run of the past two years. Indeed, the stocks that comprise the Magnificent Seven are up almost 25% in the past year vs. 17% for the Nasdaq Composite index.
More recently, the performance of the Magnificent Seven (which includes Google and Tesla) is mixed. But they have all rebounded since April from a selloff following Donald Trump's "Liberation Day" announcement of sweeping global tariffs.
The group amounted to one-third of the weight of the S&P 500 as of Friday, due to their massive market caps, their largest combined presence since the start of the year, according to LSEG Datastream.
My retirement portfolio is invested in target-date funds, which are rebalanced on a regular basis, so the tech position is about 24%, which is slightly below its average peers.
Are you overloaded in tech right now or have you adjusted your portfolio in recent weeks? Let me know your thoughts on the Magnificent Seven or the broader tech sector!
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