Seniors deciding to stay in larger homes may be contributing to the national housing shortage. In an op-ed for The Washington Post, Jim Parrott, a nonresident fellow at the Urban Institute, discusses why capital gains taxes may be preventing seniors from moving out of their larger homes. Because of these taxes, he says, many seniors are choosing to remain in their homes for the rest of their lives so that their beneficiaries inherit the houses with a stepped-up tax basis, eliminating the taxable capital gains. 

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