In Nevada, 43% of homeowners have home equity exceeding the federal capital gains tax exemption, risking significant tax bills when selling. The exemption, unchanged since 1997, allows $250,000 for individuals and $500,000 for joint filers, but rising home prices have outpaced these limits. This "stay-put penalty" discourages sales, limiting market supply. By 2035, most homeowners may face this tax unless laws change.