Over the past few months, I’ve been hearing a lot of buzz about a proposed tax change that could matter quite a bit for longtime homeowners here in the Bay Area.
The proposal is called the More Homes on the Market Act, and the idea behind it is pretty simple: update a federal tax rule that hasn’t changed since the 1990s. Today, when you sell your primary residence, you can exclude up to $250,000 in capital gains if you’re single, or $500,000 if you’re married. That might have sounded like a lot in 1997, but in Silicon Valley today, it often doesn’t go very far.
Many homeowners who bought their homes 20, 30, or even 40 years ago have built up well over a million dollars in equity. The result is that selling can trigger a tax bill large enough to make people think twice about downsizing, even if the home is larger than they want or harder to maintain.
The More Homes on the Market Act would double that exclusion to $500,000 for individuals and $1 million for married couples.
Recently, I had the opportunity to ask Congressman Jimmy Panetta about this proposal directly after hearing that it might actually be moving forward this year, possibly even as soon as this summer. His response was a typical politician non-answer, but he confirmed that the legislation is very much alive and he believes it will pass, at some point, and in some form – but what the final bill will look like, and when it might become law, appear to be quite uncertain at this time.
If something like this were to pass, it could remove one of the biggest financial barriers that keeps many longtime homeowners from selling their homes.
For many people who have owned their homes for decades, it’s a proposal worth keeping an eye on.
If you’d like to see the full details of what Congressman Panetta said and how this could affect Bay Area homeowners, you can read my full write-up here.
But the long and short of it is that if you’re looking for relief on the big fat capital gains tax bill you might have to pay when selling your long-time Bay Area home, you might have to wait a bit longer. Or a lot longer, there’s seemingly no way to know, not even by asking the bill’s foremost proponent.
However, there are ways to defer and mitigate that tax bill, which is another discussion entirely. But if you’d like to have that discussion, by all means, feel free to reach out to me, I’m happy to talk about it any time.
Sell As-Is. Sell Easy. Sell Smart!
From the Monterey Bay Wayback Machine
Watsonville Meeting Discusses Return of Japanese American Workers (March 15, 1945)
Representatives of the Japanese American Citizens League (JACL) met with sugar beet growers in Watsonville to discuss the return of Japanese American laborers to the Pajaro Valley as World War II neared its end. Many Japanese Americans had been removed from the region during wartime incarceration. The meeting reflected early efforts to restore agricultural labor and rebuild community ties as displaced residents prepared to return to the valley.
Scotts Valley Holds Hearing for First Municipal Park (March 16, 1970)
The City of Scotts Valley held a public hearing to discuss the acquisition and development of what would become Siltanen Community Park, the city’s first major municipal park. Having incorporated only four years earlier in 1966 to maintain local control and block a proposed cemetery project, the young city was beginning to establish its own public infrastructure. The proposed park aimed to provide residents with a dedicated recreation space distinct from nearby private attractions like Santa’s Village and The Lost World.
Santa Cruz Boardwalk Casino Renovations Announced (March 20, 1946)
The Santa Cruz Seaside Company announced major renovation plans for the Casino building at the Santa Cruz Beach Boardwalk in preparation for the first full summer season following World War II. The improvements were intended to refresh the popular seaside attraction and accommodate the expected return of large crowds. The announcement reflected a broader postwar revival of tourism and entertainment as communities prepared for renewed public travel and recreation.
This Week in Santa Cruz County
New Riverside Housing Opens in Santa Cruz, Reconnecting Downtown to the San Lorenzo River
Santa Cruz officials and community members recently celebrated the opening of RiverRow, a new housing development located along the San Lorenzo River. The project includes 175 apartments ranging from studios to two-bedroom units, with 20 designated as affordable housing. The development adds much-needed residential space in a region facing ongoing housing shortages.
RiverRow is also significant for its design, which connects directly to the San Lorenzo Riverwalk. For the first time in decades, a new development along the river has been oriented toward the water rather than turning its back on it, creating stronger links between downtown, the river corridor, and surrounding neighborhoods.
City leaders say the project reflects a broader effort to rethink how Santa Cruz interacts with the riverfront. By encouraging residential activity and improving public access to the riverwalk, officials hope the development will help energize the downtown area while providing new housing options for the community.
National Agriculture Day Spring Luncheon
Date: Wednesday, March 18
Time: 11:30 am – 1:30 pm
Location: Heritage Hall, Santa Cruz County Fairgrounds, 262 East Lake Ave., Watsonville
The National Agriculture Day Spring Luncheon brings together the community to celebrate the vital role of agriculture in the region. The gathering highlights the people, partnerships, and innovations that support local farming and the broader agricultural industry.
Sarah McKenzie
Date: Wednesday, March 18
Time: 7:00 pm
Location: Kuumbwa Jazz, 320 Cedar St, Santa Cruz
Australian jazz pianist and vocalist Sarah McKenzie brings elegant storytelling and expressive musicianship to the stage. Inspired by legends like Nat King Cole and Oscar Peterson, her music blends classic jazz with heartfelt vocals and refined piano. With an international career and acclaimed recordings, her performances offer a warm and sophisticated jazz experience.
The Fabulous Men of Market Street Theater presents “Broadway Memories”
Date: Saturday, March 21
Time: 2:00 pm – 4:00 pm
Location: Market Street Senior Center, 222 Market Street, Santa Cruz
“Broadway Memories” brings beloved songs from acclaimed musicals to the stage in a lively showcase of classic show tunes. Featuring talented local performers, the production celebrates the timeless music and spirit of Broadway.
Gimme Gimme Disco
Date: Saturday, March 21
Time: 8:30 pm – 10:30 pm
Location: The Catalyst, 1011 Pacific Ave, Santa Cruz
Get ready for a glitter-filled night of disco as Gimme Gimme Disco brings nonstop ABBA anthems and classic ’70s and ’80s dance hits to the floor. Expect feel-good grooves, sing-along favorites, and an energetic atmosphere that keeps the party going all night. It’s the ultimate celebration for anyone who loves disco, dancing, and pure retro fun.
Time to talk to a REALTOR?
Senior Friendly Homes in Silicon Valley South
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