BAY RIDGE — THE CAPITAL GAINS TAX BURDEN would be reduced for senior citizens selling their homes under the Nest Egg Protection Act that Rep. Nicole Malliotakis introduced in Congress.
Malliotakis, a Republican who represents Bay Ridge and Staten Island, introduced the Nest Egg Protection Act to lower the capital gains tax burden for seniors selling their homes, with the dual goal of helping them keep more of their equity when selling and boosting the number of homes onto the real estate market. Malliotakis pointed out that many seniors risk losing their equity because they need to downsize or manage other life-changing events.
Current law provides for a maximum $250,000 individual exemption or $500,000 for joint fillers from federal taxes on the sale of their primary residence, but these exclusion thresholds have remained the same since 1997. The Nest Egg Protection Act would temporarily increase the capital gains tax exclusion to $1 million for individuals and married couples aged 65 or older. To qualify, homeowners must have owned their primary residence for at least 25 years.
Malliotakis hopes that the reduced tax burden will make it easier for seniors to sell their homes, particularly to first-time home buyers and younger families.
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