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.