President Trump said he's "thinking about" eliminating capital gains tax on home sales. Here's what that would mean for the housing market.

Washington

The Trump administration is reportedly evaluating a proposal to remove capital gains tax on the sale of houses, as part of efforts to boost activity in the housing market. The discussion comes amid concerns about low housing supply and the challenge of moving homeowners out of low-rate mortgages. 

Commentators note that current tax law already allows significant capital gains exemptions for homeowners, particularly married couples, and question whether further tax relief would meaningfully improve affordability for first-time buyers. Some suggest the measure could unlock more housing supply if implemented temporarily, but others argue its benefits may be limited given the existing exemptions and the distribution of home values in the US.

Trump mulling no capital gain tax on houses

OK. There are a lot of caveats associated with this, and of course we don't know a lot of the details, but still, if we are to think about things that can facilitate transaction in this market, it does seem like the administration is committed on some level to make the housing market better, to get people out of their, you know, 3 percent mortgage rates and get some deals done here. So if you can't do it on the rate front, you're going to do it somewhere else. So that's, listen, the Polti report was fine, I think. I don't think it necessitated the kind of move you saw. I don't think the move was commensurate with the numbers in the guide, but this is exciting people clearly. And then if you get, if you do get rates lower, forget about rate cut, if rates move in the right direction, then maybe you get some tailwinds here. But to me, the mitigating factor continues to be what happens on the employment side of things. And although people will say the employment picture is still robust, and it is through the lens of the 4.2 percent or 4.1 percent, there are things below the surface that are concerning. I just think it's dumb, this whole tax thing, because if you think about it, I think the average price of a home in America is like a half a million dollars, about less than 10 percent, maybe 8 percent, or over a million dollars, right? So if you're talking about a cap gain that you're not going to have to be, you know, taxed on, that sort of thing, well, you can already roll a half a million dollars of gain for a married couple into a new home untaxed. That exists right here. And I think that when you really break this down, the only thing it really does is make housing more unaffordable, if you think about it, right? If you're going to kind of roll into a higher-priced home, and you think that you're not going to have taxes, I don't think it really does anything for affordability for those folks that are looking to buy a first home. And that's really what— Even if that unlocks supply? I don't— Because they're rolling out of a house, so that house is now on the market. Maybe. I mean, there's no—I mean, this is stupid, OK? It's not going to happen anyway. You know what? I'm just saying, all right, let's talk about Pulte's earnings. Like, this is dumb, you know? I don't know. I think it's sort of interesting, right? The reaction to it—I mean, so, DR Horton, the earnings were very good. The response in the stock, I thought, was excessive, maybe, a little bit. But you know what? It's come from a long way down. I thought this was actually an interesting idea. Do you remember during the campaign when the Harris team thought of a $25,000 cash for anyone buying a new home? Yes. Now, that seemed highly inflationary, right? Everybody then would have $25,000, and the price of all homes would go up $25,000. This, I think, is sort of interesting, because I do think there are homes that would fall under the—that it would be meaningful for the sellers, and they've been hanging on, whether it's because they have a low mortgage or just because they would have a big tax bill. And so, to unlock some supply, I think just when you have some easy supply— But why aren't they doing it right now? You have the break. You have up to half a million dollars for married couples that you don't have to pay tax on. If you don't want to buy another home, let's say you are retiring, you're looking to size down. You don't want to buy another home. Maybe you want to rent. But those people probably— If you want to downsize, you don't need an extra—that doesn't really— We just do the math. If the average home in America is about $500,000, and you already have a $500,000 benefit, and there's only, you know, 8% of homes that are above $1 million, and only 8% of the homes in America are overvalued over $1 million, it's netting out. One thing that I think would maybe make it a little more interesting, if you said, all right, we're going to have this for two years. And then that's it. And I think that would maybe give some impetus to sellers who are maybe on the fence. And so if you do unlock supply, I don't know, I sort of think it's interesting, the response in all of the stocks related, the Home Depots and the furniture and Zillow, which is my sort of biggest position related to real estate. If you have more activity on a platform, that's great margin improvement.

U.S. President Donald Trump touted new trade agreements with Japan, Indonesia and the Philippines ahead of his looming August 1 global tariff deadline. CBS News' Natalie Brand has the latest from the White House.

Global Tariffs

Trump touts new trade deals with Japan, Indonesia, Philippines

Newly released video shows Jacksonville deputies pulling William McNeil Jr. from his car during a February traffic stop, leaving him with a concussion and chipped tooth. Warning: This report contains disturbing images.

Jacksonville

Jacksonville police under scrutiny after violent arrest

As Bryan Kohberger faces sentencing for the University of Idaho murders, families and investigators are breaking their silence. The gag order has been lifted, prompting emotional impact statements and new revelations from officials involved in the case.

Boise

Officials, families break silence as Bryan Kohberger sentencing begins

U.S. President Donald Trump accused former President Barack Obama of "treason" on Tuesday, accusing him, without providing evidence, of leading an effort to falsely tie him to Russia and undermine his 2016 presidential campaign.

Trump accuses Obama of treason in attacks over 2016 Russia probe

Ukrainian President Volodymyr Zelenskyy is facing backlash over a bill he signed Tuesday night, which activists say weakens the country's anti-corruption watchdog agencies. Protests broke out in Kyiv on Wednesday over the legislation.

Kyiv

Ukraine Invasion

Ukrainians react after Zelenskyy signs controversial bill

President Donald Trump announced a long-awaited trade agreement with Japan on Tuesday night, a framework between the allies and major trading partners that appeared elusive just weeks ago.

Trump announces U.S.-Japan trade deal

The Syrian defense ministry said it was aware of reports of "shocking violations" by people wearing military fatigues in the country's predominantly Druze city of Sweida, and said it would launch an investigation. That came after fighting between Druze militia and government forces sent to the city to quell the unrest has led to hundreds of people killed.

As Suwayda

Middle East Conflict

Syria to probe 'shocking violations' in Sweida after hundreds killed

The U.S. Olympic & Paralympic Committee changed its eligibility rules on Monday, effectively barring transgender women from competing in Olympic women's sports. CBS News correspondent Elise Preston has more.

USOPC effectively bars transgender women from women’s sports

President Donald Trump says he's reached a trade deal with Japan that will set tariffs on Japanese imports at 15% and see Japan invest $550 billion into the U.S.

Trump says he's reached trade deal with Japan

Photos from Trump’s 1993 wedding and video footage from 1999 Victoria’s Secret fashion show shed light on the Trump-Epstein relationship.

New York

Photos show Jeffrey Epstein attended Trump’s wedding in 1993

Trump announced a new 19% tariff rate for goods from the Philippines after what he called a "beautiful visit" by Philippine President Ferdinand Marcos Jr. to the White House, and said U.S. goods would pay zero tariffs.

Trump says U.S. will charge 19% tariff on goods from Philippines

Deputy Attorney General Todd Blanche, who represented President Trump in his "hush money" case, announced he plans to meet with Jeffrey Epstein's former girlfriend and co-conspirator, Ghislaine Maxwell, as the push to release files related to Epstein's trafficking case continues.

Deputy attorney general seeks interview with Ghislaine Maxwell

Ozzy Osbourne, the hellraising frontman of Black Sabbath and reality TV star, has died aged 76. CNN’s Stephanie Elam looks back at the legendary career as the Godfather of Heavy Metal.

Los Angeles

Legendary singer Ozzy Osbourne dies at 76

A SkyWest flight, operating as a Delta connection, with 80 people on board made a sharp maneuver to avoid a B-52 bomber flying over the North Dakota State Fair. The FAA is investigating how the aircraft came so close.

Minot

Investigation underway after jet narrowly avoids Air Force bomber

A judge on Monday sentenced ex-Louisville police officer Brett Hankison to 33 months in prison and three years of subsequent supervised release, following the 2020 shooting death of Breonna Taylor.

Louisville

Judge sentences ex-officer in Breonna Taylor raid to nearly 3 years

A six-week-old infant and three other children have died of starvation in Gaza in the past 24 hours, local health officials said, with malnutrition and starvation now killing Palestinians faster than at any point in the 21-month war. This video includes images some may find distressing.

Jerusalem

Medics say four Gaza children starve to death in hunger crisis

Ukrainian President Volodymyr Zelenskyy said Ukraine and Russia will hold a new round of peace talks on Wednesday. The announcement comes as Russian drones hit parts of Ukraine, officials said.

Zelenskyy says Russia, Ukraine to hold new round of peace talks

The Trump administration released thousands of records related to the assassination of Dr. Martin Luther King Jr., despite objections from his family. CBS News' Weijia Jiang has the latest.

Trump admin releases Martin Luther King Jr. assassination records

Students gather to protest in Bangladesh outside the school where a military jet crashed Monday, killing at least 30 people, including dozens of children.

Dhaka

Protests break out as death toll passes 30 in Bangladesh jet crash

CBS News has learned that a new assessment of the U.S. strikes on Iranian nuclear sites in June finds that only one of three facilities was possibly destroyed. CBS News senior national security correspondent Charlie D'Agata has the details.

Tehran

U.S. strikes may have destroyed one Iranian nuclear facility

For the first time, Taiwan has combined two major civil defense exercises and staged them in conjunction with its largest-ever military simulation. CNN’s Will Ripley explains why the self-governing island is bolstering its preparations for a potential war with China.

Taipei

Taiwan holds unprecedented military drills

With questions continuing around the so-called Epstein files, U.S. President Donald Trump has made several controversial social media posts. Some political scientists say the posts are likely a way to distract the public from talking about Trump’s past ties sex offender Jeffrey Epstein.

Trump posts fake AI video of Obama arrest amid Epstein furor

The next set of peace talks between Ukraine and Russia - the first meeting in seven weeks - is planned for Wednesday in Turkey, President Zelenskyy quoted the head of Ukraine's National Security and Defence Council as saying.

Zelenskyy says new peace talks planned for Wednesday

Israel’s latest offensive in Gaza is targeting humanitarian hub Deir al-Balah because officials believe Hamas is hiding hostages there. The move comes as 25 countries, including Canada, called for an immediate ceasefire and the resumption of aid.

Israeli offensive targets humanitarian hub of Deir al-Balah

A sweeping cyber espionage operation targeting Microsoft server software 'SharePoint' compromised about 100 different organizations as of the weekend, two of the organizations that helped uncover the campaign said on Monday (July 21).

Redmond

Microsoft server hack hit about 100 organizations, experts say

Protestors showed up at the federal courthouse in Boston on Monday amid Harvard's $2 billion legal battle with the Trump administration.

Boston

Protestors gather outside courthouse amid Harvard-Trump hearing

Malcolm-Jamal Warner, an actor and artist who rose to fame as a child as Theodore Huxtable on “The Cosby Show,” has died in a drowning accident in Costa Rica, where he was on vacation with his family, according to a source close to the actor.

‘The Cosby Show’ star Malcolm-Jamal Warner dead at 54

An off-duty U.S. Customs and Border Protection agent was shot after an apparent robbery went wrong in New York, officials say. New York Mayor Eric Adams said a 21-year-old undocumented immigrant was taken into custody. The agent is in stable condition and is expected to survive.

Off-duty Border Patrol agent shot in NYC by undocumented migrant

The jet crashed onto the campus of Milestone School and College in Dhaka's Uttara neighbourhood, where students were taking tests and attending regular classes.

At least 20 killed after Bangladesh Air Force jet crashes into school

An investigation into Jeju Air's fatal plane crash in December has found "clear evidence" that pilots shut off the less-damaged engine after a bird strike in South Korea, a source told Reuters. But a progress report was not released as planned, after families of the bereaved protested some of its phrasing.

Breakdown