Subject: Tax Reform Suggestion Comment: In addition to reducing the mortgage interest limitation may I suggest the panel consider reinstituting the one-time only capital gains exclusion on a principle residence. The recent change, allowing continuous capital gain exclusions on a residence occupied for two of the previous five years has resulted in inflation of home prices and avoidance of customary capital gains taxes - making real estate the only tax free investment. Homes in "hot markets" are now too expensive for the vast majority of residents. The capital gain avoidance clause is responsible for this imbalance. |