But you're not taking a hit really. You just think your are. You have made a profit still if you sell your house, tax the hit in capital gains and buy another p

But you're not taking a hit really. You just think your are. You have made a profit still if you sell your house, tax the hit in capital gains and buy another place. It's not as much profit as without the capital gains but it's a lot more profit then if you took that original house price money and put it in a mattress. Hell that's even more money then just sticking it in the bank and getting a small interest rate. You're not taking a financial hit, you just feel as you are. You think the capital gains tax is taking out a huge financial hit on something you already made lots of profit from. So you're still making a profit just not the one you imagined you were making. That's like someone seeing their pay for the first and releasing the difference between gross pay and net pay. They think they are getting X but really they are getting Y. Both amounts of which are > 0 and so they are still making money. Like you still are.