New Housing Tax Will It Affect Sellers In 2013.

New Housing Tax Will It Affect Sellers?

Flying all over the Internet has been the statement --- "Did you know that if you sell your house after 2012 you will pay a 3.8 percent sales tax on it"? When did this happen? It's in the health care bill. Just thought you should know. Once litigation challenging the law's constitution-ality surfaced in federal courts the email warning subsided. But with the law schedule to take effect less than six months from now questions are being raised again: Is there really a 3.8 percent transfer tax on real estate coming in 2013? Does it preempt the existing $250,000 and $500,000 capital gains exclusions for single filing and joint filing home sellers.

Yes, there's is a new 3.8 percent surtax that take effect January 1, 2013 on certain investment income of upper-income individuals including some of their real estate transactions. But it's not a transfer tax and not likely to affect the vast majority of homeowners who sells their primary residences next year. In fact unless you have an adjusted gross income of more than $200,000 as a single filing tax payer or $250,000 for couples filing jointly ($125,00 if you're married filing singly) you probably won't be touched by the surtax at all, though you could be affected by other changes in the code if Congress fails to extend the Bush-era tax cuts scheduled to expire at the end of this year.

Even if you do have income greater than these thresholds you might  not be hit with the 3.8 percent tax unless you have certain types of investments income targeted by the law, specifically dividends, interest, net capital gains and net rental income.

Information offered by: Crescent Moon Realty, Inc.Get your "free" home buyers guide now.

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