The Truth About the New 3.8% Tax
Starting on January 1st, 2013 a new tax passed by congress to help fund the Health Care Reform Legislation in 2010 will go into effect. If you’re like many of us here at Windermere Professional Partners you may have been forwarded scary emails that tell you that that tax will be added to all real estate transactions after 2013. This is not true. The folks over at FactCheck.org summed it up very well:
The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home. – Factcheck.org
It’s understandable that many people are confused about the law. Only a highly trained tax advisor could blast through some of the highly technical and confusing language in the bill. The good news is that only a small portion of high income earners will be effected by the tax, and fortunately- those people already have highly trained tax advisors to help them navigate these waters.
If you have any questions about the law, check out this article from the National Association of Realtors, check out their information packet here, or contact us.