Homeowners who sell their homes have to recognize a capital gain - if there is any - but not capital loss they way we can do with other assets.
The proposal is that for one or two tax years: 2011 and 2012, for example, homeowners who sell their homes at a loss should be allowed to recognize a capital loss up to, say, $50,000.
Such losses can be used like any other capital loss: to offset capital gains and then to be carried over $3,000 each year.
This will allow many homeowners, stuck in a house that lost its value, to move where they can get a new job.