Revisit and Modify The Tax Payer Relief Act of 1997

The Tax Payer Relief Act of 1997 has resulted in unintended financial burden for retirees/senior citizens with the sale of their primary home. At the time the law was passed, the intent was that the majority of home owners would not incur capital gains. But the law did not consider the increase of home prices nor the death of a spouse. Over the past 30 years, some home prices have increased up to 40%. The current tax exemption of $250,000 for singles is not enough to off-set capital gain taxes. A surviving spouse or divorcee cannot take the $500,000 exemption on a home purchased 30 plus years ago. Single retirees that downsize and sell their home are penalized as well. Congress should increase the tax exemption for singe Americans to $350,000 to keep up with home sale prices.