Right now there are tens of thousands of older homeowners in CA who won’t sell their home until one spouse passes away. The reason: capital gains taxes. If they bought a home in the 80’s for 200k & it’s worth 2M today, they would be dumb to sell even if it’s too big for them. 🧵 Under current law, each homeowner spouse gets a 250k deduction on the sale of their primary residence. In the example above, a 1.8M gain, minus a 500k deduction, minus costs of sale = state & fed taxes on a gain of 1.1M (about $350k in taxes). Thats a ton of money!