79.1% of Homeowners in Hawaii Will Face a Hidden Home Equity Tax If They Sell

Outdated tax caps meet soaring prices

The federal capital gains exclusion was created in 1997 to help homeowners keep more of the profit from selling their primary residence. At the time, the limits—$250,000 for individuals and $500,000 for couples—covered most typical sales. But since then, home prices have skyrocketed nationwide, and even more dramatically in Hawaii.

If the caps had been indexed to inflation, they would now be over $660,000 and $1.32 million.<

https://www.hawaiifreepress.com/Articles-Main/ID/45822/791-of-Homeowners-in-Hawaii-Will-Face-a-Hidden-Home-Equity-Tax-If-They-Sell