An Evaluation of the One‐Time Capital Gains Exclusion for Older Homeowners

Sandra Newman, James Reschovsky

Research output: Contribution to journalArticlepeer-review

5 Scopus citations


This paper provides an evaluation of the one‐time capital gains exclusion for older homeowners. This provision was largely intended to prevent large capital gains tax liabilities from locking older households into current, and possibly inappropriate, housing. We find the exclusion facilitates a modest number of moves, through not entirely of the downscaling type intended by Congress. Among beneficiaries, the distribution of benefits appears to be highly regressive. Modest benefits are also found to be enjoyed by the real estate and mortgage industries. Revenue losses are estimated and found to be significantly larger than estimates provided by the Treasury Department.

Original languageEnglish (US)
Pages (from-to)704-724
Number of pages21
JournalReal Estate Economics
Issue number1
StatePublished - Mar 1987

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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