Literally, what I said…you are taxed on the increase in your wealth, at some point.
However, specifically the increase in home values has an exempted amount - 250,000/500,000 based on filing status and ownership tests, is excluded before capital gains hit.
Jenna_Rein t1_j6ifsdo wrote
Reply to comment by Megalocerus in ELI5: Why does the IRS want your illegal income declared on tax returns? by xCreamPye69
Literally, what I said…you are taxed on the increase in your wealth, at some point.
However, specifically the increase in home values has an exempted amount - 250,000/500,000 based on filing status and ownership tests, is excluded before capital gains hit.