At this juncture, all signs point to greater tax relief for home-sellers. Both the White House and Congress are giving their blessings to a $500,000 exclusion from capital gains taxes on the sale of a home.

Experts say this particular provision will, however, have less impact than meets the eye since it is already very hard to pay capital gains on the sale of a home.

• Under current law, no tax is owed if gains are used within two years to purchase a more expensive home, and a one-time $125,000 exclusion is available to those over 55 years old.

• The new $500,000 exclusion would replace both these provisions.

• The proposed change will cost the government only $1.4 billion in lost revenues through 2002.

• The exclusion is available once every two years, and the home sold must have been the principal residence of the taxpayer for at least two of the past five years.

Housing analysts estimate that less than 1 percent of homes fit into the over-$500,000 range.

Under current law the two-year deferral would cost the Treasury $77 billion this year, and the over 55 provision would cost $21 billion.

Tax breaks for housing are already substantial. Mortgage interest and property taxes are deductible and rental housing is subject to depreciation.

About one-third of all net investment is in owner-occupied housing, and those who have had to calculate capital gains on the sale of a residence say it is one of the most complex and daunting tasks imaginable. So perhaps the main impact is a small but welcome simplification in the tax code.

Source: Jeff A. Taylor, "More Benefits for Homeowners," Investor's Business Daily, July 1, 1997.