Homeowners Face a Stiff Penalty for Staying in Their Homes Too Long—a Hidden Home Equity Tax

Published by REALTOR.com | June 24, 2025 Today, roughly 29 million households have built up more home equity than the federal capital gains tax exclusion protects when they sell. Millions of American homeowners are sitting on a hidden tax burden they never planned for—one that threatens their hard-earned home equity and, at the same time, …

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