Eliminating capital gains on home sales would be a boon for older homeowners in high-cost states

[karynnj]

2. Note this ONLY affects people who have a very large capital gain

For married couples that is $500,000 and $250,000 for a single person. This gain would be after any costs to sell and the cost of any capital improvements. These are very generous thresholds that few will hit and only the amount above the threshold is taxed.

Consider that these people probably benefited from itemized deductions for both mortgage and property taxes especially in the years before Trump changed the tax code.

For the small number of people who exceed those thresholds, consider that the gain is already taxed as a capital gain rather than as ordinary income. The alternative of money in a tax advantaged regular IRA is taxed as ordinary income.

For many people, home ownership was one of best paths to creating a nest egg.