San Diego, December 12, 2025
The San Diego County Board of Supervisors has unanimously voted to support federal capital gains tax reform on home sales. The proposed changes aim to increase or eliminate exclusion caps on capital gains taxes for owner-occupied homes, which is expected to stimulate the local housing market. The Chief Administrative Officer will now work to incorporate this support into the County’s legislative agenda and monitor the progress of related legislation.
San Diego County Supervisors Approve Support for Capital Gains Tax Reform
San Diego, CA – The San Diego County Board of Supervisors has voted to support federal legislation aimed at reforming capital gains taxes on home sales. This decision is intended to stimulate the housing market by increasing or eliminating the exclusion caps on capital gains taxes for owner-occupied homes.
Details of the Decision
On December 3, 2025, Supervisors Jim Desmond and Assessor/Recorder/County Clerk Jordan Marks presented a recommendation to the Board. The proposal directs the Chief Administrative Officer to include in the Board’s Legislative Program support for federal legislation that would amend the exclusion of capital gains tax on sales of owner-occupied housing to increase or eliminate the exclusion caps. The Board unanimously approved this recommendation.
Background on Capital Gains Tax Exclusions
Under current federal tax law, homeowners can exclude up to $250,000 ($500,000 for married couples) of capital gains from the sale of their primary residence, provided they meet certain conditions. These exclusions have remained unchanged for many years, leading to calls for adjustment to account for inflation and rising home values. Recent bipartisan efforts in Congress have proposed increasing these caps or eliminating them altogether to encourage more homeowners to sell, thereby increasing market activity.
Implications for San Diego County
By supporting this federal legislation, the San Diego County Board of Supervisors aims to enhance housing market fluidity. The proposed reforms are expected to benefit homeowners looking to sell their properties by reducing the tax burden associated with capital gains. This move aligns with the County’s ongoing efforts to promote economic growth and address housing affordability challenges in the region.
Next Steps
The Chief Administrative Officer will now work to incorporate this support into the County’s legislative agenda. The Board will continue to monitor the progress of federal legislation related to capital gains tax reform and advocate for measures that support the local housing market and economy.
Frequently Asked Questions (FAQ)
What is the capital gains tax exclusion for home sales?
Under current federal tax law, homeowners can exclude up to $250,000 ($500,000 for married couples) of capital gains from the sale of their primary residence, provided they meet certain conditions.
Why is San Diego County supporting changes to the capital gains tax exclusion?
The County aims to stimulate the housing market by increasing or eliminating the exclusion caps on capital gains taxes for owner-occupied homes, encouraging more homeowners to sell and thereby increasing market activity.
What are the proposed changes to the capital gains tax exclusion?
Recent bipartisan efforts in Congress have proposed increasing these caps or eliminating them altogether to encourage more homeowners to sell, thereby increasing market activity.
How will these changes affect homeowners in San Diego County?
Homeowners looking to sell their properties may benefit from reduced tax burdens associated with capital gains, potentially making it more financially feasible to sell their homes.
What is the next step after the Board’s decision?
The Chief Administrative Officer will incorporate this support into the County’s legislative agenda, and the Board will continue to monitor the progress of federal legislation related to capital gains tax reform.
Key Features of the Capital Gains Tax Reform Support
| Feature | Description |
|---|---|
| Legislation Supported | Federal bills proposing to increase or eliminate exclusion caps on capital gains taxes for owner-occupied homes. |
| Board’s Action | Unanimous approval to include support for the legislation in the County’s Legislative Program. |
| Intended Outcome | Stimulate the housing market by encouraging more homeowners to sell their properties. |
| Implications for Homeowners | Potential reduction in tax burdens associated with capital gains, making it more financially feasible to sell homes. |
| Next Steps | Incorporate support into the County’s legislative agenda and monitor federal legislation progress. |
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