Missouri Becomes the First State to Eliminate Capital Gains Taxes for Individuals

By , on September 10th, 2025

In July 2025, Governor Mike Kehoe signed House Bill 594, a groundbreaking reform that retroactively eliminates all Missouri state capital gains taxes for individuals, effective January 1, 2025. With this law, Missouri becomes the first U.S. state imposing an individual income tax to completely exempt personal capital gains from state taxation. Now, all capital gains—whether short-term or long-term, from sales of stocks, bonds, real estate, cryptocurrency, or businesses—are fully deductible from Missouri taxable income, thanks to a 100% subtraction for individuals.

This tax shift delivers powerful incentives across the board:

    • Real estate investors—especially those holding rental properties—face less friction when deciding to sell, since state taxes no longer eat into their gains.
    • Homeowners considering selling due to profit or lifestyle changes may now benefit from greater net proceeds.
    • Other asset holders (e.g., stocks or crypto investors) can also capitalize on improved after-tax returns.

But it’s important to be clear: federal capital gains taxes still apply. Long-term gains remain subject to 0%, 15%, or 20%, depending on income level, while short-term gains are taxed as ordinary income. Missouri’s reform exclusively addresses state tax liability, leaving federal obligations untouched.

Consider this scenario: A real estate investor bought a rental property 10 years ago for $150,000, has taken $25,000 in depreciation, and is now selling it for $300,000 in 2025. Here’s how the Missouri state tax savings break down:

  1. Calculate gain:
       – Sale price: $300,000
       – Adjusted basis (purchase price minus depreciation): $150,000 − $25,000 = $125,000
       – Capital gain: $300,000 − $125,000 = $175,000
  2. State tax under prior law (4.8% top rate):
       $175,000 × 4.8% = $8,400 in Missouri state tax liability.
  3. With HB 594 in effect:
       That $8,400 in state taxes is entirely eliminated—meaning the investor now keeps an additional $8,400 compared to pre‑2025 law.

Clarification: This is state-level relief only. The investor still owes federal capital gains tax, determined by whether the gain is short-term or long-term (0%, 15%, or 20%). HB 594 simply removes the Missouri tax burden, dramatically improving the after-tax outcome for sellers as of 2025.


Curious about what this means for your home or your next move? I’m here to help you make sense of it all — with insight, strategy, and no fluff.

Let’s have a real conversation about real estate. I’m ready when you are.
Sandie Hea
Sandie Hea
SellYourStLouisHome.com
sandie.hea@stlre.com
314.806.1908

Why a Vacant House Won’t Sell Itself — And What to Do About It

By , on May 19th, 2025

After 38 years in real estate, I’ve seen the same pattern again and again: vacant homes don’t just look empty—they feel empty. And they don’t sell as well.

When buyers scroll through listings online, they’re not just looking for square footage or appliance brands—they’re looking for a feeling. They want to imagine their life in the space. And that’s nearly impossible when a home is empty, stark, and echoing.

Without furniture, every flaw screams louder. Wall dings, floor scratches, awkward corners—they stand out because there’s nothing else to catch the eye. There’s no warmth, no sense of scale, and no emotional pull.

Compare that to a staged home. I’m not talking about virtual staging or placing some grainy computer-generated couch into a photo. I’m talking about real, professional staging. Rooms that look like something out of a magazine—inviting, organized, and aspirational. Buyers lean into those photos. They feel hopeful, even if they don’t own that style of furniture or even like the color palette. They’re not buying the décor—they’re buying the feeling it gives them.

One of the most important yet overlooked reasons for staging is perspective. Without furniture, buyers have a hard time visualizing how big a room is or where a bed or sofa would go. That uncertainty breeds hesitation—and hesitation kills offers.

I don’t need a statistic to tell you staged homes sell faster and for more money. I’ve seen it firsthand—over and over again. And here’s a truth you can bank on: the cost of professional staging will be less than your first price reduction. Every time.

So if your house is sitting vacant, think twice before assuming it “shows fine.” It doesn’t.

Let me help you create a space buyers want to walk through. Because the goal isn’t just to list your home. The goal is to sell it—and sell it well.

Below are real examples from a recent listing to show how much of a difference real staging makes:

Dining Room BEFORE

Dining Room BEFORE

Dining Room AFTER

Dining Room AFTER

Living Room BEFORE

Living Room BEFORE

Living Room AFTER

Living Room AFTER


Below is the newly released 2025 Profile of Home Staging from the National Association of REALTORS® which does an excellent job of showing the benefits of staging and backing it up with recent data:


Missouri’s New Homestead Property Tax Credit: Relief for Senior Homeowners

By , on September 5th, 2024
A significant change in property tax law took effect in Missouri on August 28, 2024, offering financial relief to many of our senior residents. The newly implemented Homestead Property Tax Credit is designed to help senior citizens manage their property tax liabilities more effectively. Here are the key points of the new law:

  • Eligibility: Missouri residents who are 62 years or older, own their home, and are liable for real property taxes.
  • Credit Amount: The credit equals the difference between the current tax liability and the tax liability during the taxpayer’s initial credit year.
  • Local Adoption: Counties can adopt the credit through an ordinance or a voter-approved referendum.  The Homestead Property Tax Credit operates under a simple premise: protect senior homeowners from rising property tax liabilities. For eligible seniors, the credit stabilizes the tax amount payable to the figure from their initial credit year, shielding them from subsequent increases. This means if the property tax rises after a senior’s initial credit year, the tax burden will not.

For implementation, each county has the option to either pass a local ordinance or bring the matter before voters with a referendum. If approved via referendum, the ballot will pose a straightforward question about exempting seniors from increases in property tax liabilities due on their primary residences.

How Does the Homestead Act Work?

The Homestead Act plays a crucial role by defining the ‘homestead’ as the primary residence of the taxpayer, where the tax credit is applied. Here’s how it works:

  • Tax Stabilization: Once a homeowner qualifies, any increase in property tax assessments will not affect their payable amount, unless there’s new construction or improvements on the property.
  • Adjustments for New Improvements: If an eligible taxpayer makes improvements to their home, the tax liability will adjust accordingly for that year but will stabilize again for subsequent years.
  • Impact of Annexation: If a home is annexed into a new taxing jurisdiction where previously no real property tax was owed, the initial credit year’s tax liability will adjust to reflect the new obligations.

Helpful links to counties that have implemented the program already:

  • City of St Louis (program applications are closed until March 2025)
  • St Louis County (program is waiting on staffing and setup but you can sign up for email status notifications)
  • St Charles County (program applications are closed for 2024 tax bills)

This initiative not only offers financial relief but also promotes stability and predictability for seniors in managing their most significant investment—their home. As counties begin implementing these changes, it’s essential for residents to stay informed about how these adjustments could benefit them personally. For additional insights on navigating property tax changes or purchasing a new home, consider reaching out to our experts at MORE, REALTORS®. Our seasoned team is committed to providing tailored advice that protects and enhances your real estate investments.

 

Most Consumers Who Sold to Opendoor Lost Money According to FTC Complaint

By , on August 3rd, 2022

Maybe you’ve received an unsolicited offer recently to buy your home via email or postcard from Opendoor, a home buying firm. OpenDoor will make an offer on your house, bypassing the traditional method of selling your home via a REALTOR® using the MLS (which reaches 13,000+ REALTORS®) and entices you with catchy phrases on their website like “Get an instant offer and get paid” and “Skip showings and repairs”. It can sound good and SIMPLE but, according to the FTC complaint against OPENDOOR LABS, Inc. (Opendoor) and the agreement and consent order, “…consumers who sold to Opendoor have lost money compared to what they would have received through a traditional sale.”

The consent order which, according to a press release issued by Opendoor about the FTC complaint, they have agreed to, prohibits Opendoor from misrepresenting:

[xyz-ips snippet=”Sande-Hea—Seller-Resources-Listing-Targeted”]

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