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How Biden’s capital gains proposal may hit middle-class home sellers in red-hot markets

April 28, 2021


As home prices soar, some sellers in red-hot markets may face a costly surprise come tax time.

President Joe Biden will propose in a nationwide address Wednesday a capital gains tax increase for the top 0.3% of households — those making more than $1 million per year.

But the proposal may also deliver a tax bill to those selling a home with significant gains.

Wealthy Americans now paying the top capital gains rate could see a hike to 43.4%, from 23.8%. Both rates include a 3.8% levy on net investment income, created by the Affordable Care Act.

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