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AU Forester 2002 wrote:

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How does this affect you? If you sell your home and make a profit, you will pay 28% of your gain on taxes. If you are heading toward retirement and would like to down-size your home or move into a retirement community, 28% of the money you make from your home will go to taxes. This proposal will adversely affect the elderly who are counting on the income from their homes as part of their retirement income.

Correct me if I am wrong but if you live in the home over 2 years, then you do not pay any taxes for capital gains. Did they change this??

If you lived in the home a minimum of 2 years or(2 out of the last 5 years) as your primary residence, then you can exclude any profit on the sale of that home from your taxable income, up to 250K for an individual & 500K for a married couple.

This rule has helped fuel the housing boom over the last decade. People tended to not move around as much to avoid the cap gains tax, which is absolutely a ridiculous double tax to begin with.

I hope the Democratic nominees are not discussing repealing the cap gains exclusion on primary residences. That is bad for everyone.