Boomers Are Not Moving Out of Their Big Homes. Here’s Why.
Published 6:00 AM EST, Mon January 29, 2024
By Anna Bahney, CNN
Many homeowners are asking why they should downsize if doing so isn’t that much cheaper.
Federal and possibly state capital gains taxes can be significant for long-time homeowners who have seen their property values soar over several decades.
Most homeowners don’t have to pay capital gains on their home when they sell. Thanks to tax legislation from the ’90s, a gain of up to $250,000 for a single tax filer or $500,000 for a couple filing jointly is exempt from tax. That’s providing the sale is of the homeowner’s primary residence and that they meet other requirements such as living in the property for two of the past five years.
Plus, smaller homes or apartments in the neighborhoods they’ve come to love are rare. And with current prices and mortgage rates so high, there is often a negligible cost difference between their current home and a smaller one.
Read on for more information on this National trend:
Boomers are not moving out of their big homes, here’s why | CNN Business