A house makes a good investment towards building equity. At the same time when you are ready to sell your home, there is no capital gains tax on any net profit less than $250,000 per individual (and up to $500,000 per married couple).
That means an individual is saving about 15% or $37,500 on the $250,000 net profit if the home sale netted a profit. A married couple is saving about $75,000 in capital gains tax on $500,000 net profit when selling a home.
https://en.wikipedia.org/wiki/Taxpayer_Relief_Act_of_1997
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