P
resident Donald Trump is considering a plan to exempt home sales from capital gains tax, which could help "unleash" the housing market. At a White House Q&A session, a reporter asked about scrapping the tax, and Trump replied that his administration was thinking about it. However, he also suggested that lowering interest rates would be an effective way to stimulate the market without needing to eliminate capital gains tax.

    Currently, homeowners can exclude up to $250,000 ($500,000 for joint filers) of taxable gain from their primary residence if they've owned it for at least two years. This exemption was set in 1997 when home prices were lower. Trump's comment followed a bill introduced by Rep. Marjorie Taylor Greene that would eliminate federal capital gains taxes on primary residences altogether.

    Trump also criticized the Federal Reserve, blaming high interest rates for locking out potential buyers and placing blame on Fed Chair Jerome Powell. He argued that Europe has lowered its interest rate 10 times since the pandemic began, while the US has not lowered its rate at all, causing a problem for homebuyers.