Gain Clarity On The New 3.8% Sale Tax On Property Sale

by ritasimpson on June 23, 2012

in Money Talk

Rumors spread, but lets make sure we understand the facts: This false statement has been going around creating not only confusion, but also unnecessary anguish.

Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it?  That’s $3,800 on a $100,000 home,and it’s all because of the health care bill…

The confusion started with the passage of the Patient Protection Affordable Care Act which calls for high income households to be subject to a 3.8% Medicare tax on investment income starting 2013.

The claim that a 3.8 percent tax on all home sales is inaccurate and needs to be corrected. The truth about the bill is that if you sell your home for a profit above the capital gains threshold of $250,000 per individual or $500,000 per couple then you would be required to pay the additional 3.8 percent tax on any gain realized over this threshold.

Most people who sell their homes will not be impacted by these new regulations. This is not a new tax on every seller, and that correction needs to be made. This tax is aimed at so-called “high earners” – if you do not fall into that category you will not pay any extra taxes upon the sale of your home. It’s also important to note that the tax is calculated on  the surplus after the exclusion of the $250,000 capital gain for individual or $500,000 for couples. It is not calculated on the entire value of the Sale Price, as has been erroneously circulated.

Here is an explanation of the whole deal

Leave A Reply With Facebook

Malibu Home Search Malibu Home Values

Post by Rita Simpson

Rita has written 468 articles.

Leave A Reply With Facebook

Previous post:

Next post: