Staten Island Congresswoman Rallies With Real Estate Community To Support Capital Gains Tax Relief For Seniors Looking To Sell Their Homes

 

Editor’s note: We have reported on this legislation in the past when it was introduced.  We have also covered some of the benefits that elderly Staten Islanders and New Yorkers are expected to receive from the OBBBA.  Other aspects of the same act, especially as applied to student loan repayment plans and forgiveness programs, tightening of SNAP benefits qualifications and work requirements, and the expected reduction in the proportion of Americans that have health insurance.  While some families will still qualify for Medicaid if they are very low income (and meet work requirements for this aid as well), this bill is expected to most affect those who are somewhere in the middle.  So for those who have an income between 200 and 250% of the Federal Poverty Level (between $31-39k per year), they will no longer qualify for free health insurance for themselves or their children.  This affected 450,000 New York families who previously qualified for health insurance.  This type of reduction increases the burden on hospitals, because hospitals will not turn someone away for care, but those patients will be unable to pay, and now there will be no Medicaid reimbursement for that care.  For this reason, many rural hospitals may close due to the inability of their states to step in when the federal government fails, where New York can offer some help in this area.  At the same time, the federal government failed to renew tax rebates for health insurance (these appear to have been built into the price of the insurance), which makes it so that even more people will skip renewing their health insurance, since they can no longer afford it.  It’s only very recently that politicians were pointing to a very low proportion of Americans being uninsured (that rate dropped from 14% in 2013 upon ACA passage to 7% in 2025 before these changes were implemented) to where the very opposite is likely to become true in the next year or so – i.e. fewer Americans will be insured than ever.  

Malliotakis Rallies with Staten Island Realtors in Support of Capital Gains Tax Relief to Protect Seniors’ Nest Eggs

 

(STATEN ISLAND, NY) — Congresswoman Nicole Malliotakis (NY-11) joined local Staten Island Realtors and seniors at the Great Kills Friendship Club to rally support for H.R. 9064, the Nest Egg Protection Act, and H.R. 1340, the More Homes on the Market Act.

Malliotakis’ legislation, the Nest Egg Protection Act, would lower the capital gains tax burden on seniors selling homes that have long served as their nest eggs by temporarily increasing the capital gains tax exclusion to $1 million for individuals and married couples aged 65 or older. To qualify, homeowners must have owned their primary residence for at least 25 years. This would allow seniors to keep more of their hard-earned equity while helping bring more homes onto the market.

Under current law, individuals may exclude up to $250,000 in capital gains from federal taxes on the sale of their primary residence, while joint filers may exclude up to $500,000—exclusion amounts that have not been increased since 1997. Any gain above those amounts is subject to capital gains tax.

In addition to her legislation, Malliotakis discussed H.R. 1340, the More Homes on the Market Act, legislation she cosponsors which provides additional capital gains tax relief for homeowners of all ages to help bring more homes onto the market. The legislation doubles the current home sale capital gains exclusion from $250,000 to $500,000 for individuals and from $500,000 to $1 million for married couples, with future increases adjusted for inflation.

“After already quadrupling the state and local tax deduction to $40,000, we are continuing our work to deliver tax relief for New York homeowners. Today, I join Staten Island Realtors and seniors to highlight two commonsense bills that would provide much-needed capital gains tax relief for longtime homeowners and help address our housing shortage,” said Congresswoman Nicole Malliotakis. “My legislation provides targeted, temporary relief for seniors who have owned their homes for decades, allowing them to sell or downsize without losing so much of the retirement savings they spent a lifetime building. By easing that tax burden and removing barriers to selling, we can help bring more homes onto the market and open the door to homeownership for young families and first-time buyers.”

“Congresswoman Nicole Malliotakis deserves tremendous credit for introducing this long-overdue legislation to raise the capital gains tax exclusion for seniors selling their homes from $500,000 to $1 million. It is the responsibility of elected officials to improve affordability for all Americans and ensure hardworking taxpayers are not overtaxed by an outdated tax code. This threshold has not been updated since the 1990s, despite decades of rising home values that have unfairly increased the tax burden on many seniors. I urge my colleagues across the aisle to join Congresswoman Malliotakis in supporting this commonsense measure and finally deliver this long-overdue tax relief,” said Assemblyman Michael Tannousis.

“The Staten Island Board of REALTORS® supports the Nest Egg Protection Act as a common-sense approach to increasing housing inventory while helping seniors keep more of the equity they have earned over a lifetime. By reducing a major tax barrier to selling, this proposal could encourage more longtime homeowners to right-size their housing and create opportunities for the next generation of homebuyers,” said Sandy Krueger, CEO, Staten Island Board of REALTORS®.

“This legislation would have an immediate effect on inventory since it reduces some of the financial strain on seniors who are deciding to sell. It also will provide a strong benefit for those who have lost their partner by giving them a financial lift and assisting them in selling so that they can improve their quality of life without the fear of losing the equity in their home to capital gains taxes,” said Frank Reali, Broker, Safari Realty.

“This proposed legislation is keeping up with the current status of the real estate market. Pricing continues to increase and for our seniors who have worked their entire lives to have the American dream of homeownership, they face the challenge of worrying about paying massive capital gains taxes when they helped build our neighborhoods and communities. Thank you Congresswoman Malliotakis for proposing this common sense legislation,” said George S. Wonica ‘Jr’ – Broker/Appraiser – REAL Brokerage & Past President – Staten Island Board of Realtors & Brooklyn Board of Realtors.

“For years, we’ve watched seniors become prisoners of their own success. They did everything right, bought a home, paid the mortgage, stayed in the community, and now the tax code punishes them for moving. Congresswoman Malliotakis’ proposal removes a major barrier, frees up housing inventory, and creates opportunities for both seniors and young families. It’s one of the smartest housing ideas I’ve seen in years,” said Celia Iervasi, International Realty Services.

 

“Every real estate professional knows there are homes that are effectively frozen. Many seniors aren’t staying put because they want to, but because the tax consequences of selling have become too great. I thank the Congresswoman for recognizing that reality and introducing a bill that helps restore the freedom to make the housing decisions that are right for them. That’s good for seniors, good for families looking to buy a home, and good for the overall housing market,” said Joanne Costa, Joanne Costa Realty.

 

Watch the full press conference here

Banner Image: Congresswoman Malliotakis at Great Kills Friendship Club with local Staten Island Realtors and seniors.  Image Credit – Rep. Malliotakis