Trump Considers Eliminating Capital Gains Tax on Homes, Citing Fed Rates as Key Factor

President Donald Trump signaled potential sweeping changes to US tax policy during a Tuesday briefing, floating the elimination of capital gains taxes on home sales. The proposal hinges on Federal Reserve interest rate cuts, with Trump suggesting such monetary easing could RENDER the tax cut unnecessary. "If the Fed would lower the rates, we wouldn't even have to do that," the president remarked in the Oval Office.

The current tax framework allows homeowners to exclude up to $250,000 in capital gains from primary residence sales. Approximately 15% of homeowners—some 13 million households—currently exceed this threshold according to National Association of Realtors data. This move WOULD amplify recent legislative efforts like Representative Marjorie Taylor Greene's "No Tax on Home Sales Act," which seeks to abolish federal capital gains taxes on residential properties entirely.

Capital gains taxation currently applies three-tiered rates (0%, 15%, 20%) based on income thresholds. The potential policy shift could inject liquidity into real estate markets, though Trump's remarks suggest implementation remains contingent on monetary policy adjustments. Market analysts will be watching for Ripple effects across asset classes should this proposal advance.