We have often shared "spam" messages that we receive. I recently received this one but it wasn't a typical "spam" type, but definitely one that seemed misguided. Because I personally had never heard of a real estate sales tax, I thought rather than ignore this email, I would check with my (stellar) accountant. This is a lesson in RESEARCHING the facts and NOT believing everything you see on TV or receive via mail or email.
HERE IS THE "MISGUIDED EMAIL":
The National Association of Realtors is all over this and working to get it repealed, -- before it takes effect. But, I am very pleased we aren't the only ones who know about this ploy to steal billions from unsuspecting homeowners. How many realtors do you think will vote Democratic in 2012?
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, etc. When did this happen? It's in the health care bill, -- and it goes into effect in 2013. Why 2013? Could it be so that it doesn't come to light until after the 2012 elections? So, this is â change you can believe in?
Under the new health care bill all real estate transactions will be subject to a 3.8% sales tax.
If you sell a $400,000 home, there will be a $15,200 tax. This bill is set to screw the retiring generation, -- who often downsize their homes. Does this make your November, 2012 vote more important?
HERE IS MY ACCOUNTANT'S RESPONSE:
This is about the 3.8% Medicare Tax that is in the Healthcare Act. It is intended to be a tax for people with incomes over $250,000.It does go into effect next year. The tax is based on unearned income (interest, dividends and capital gains mostly) that are taxed. Our understanding of the tax is that if the taxpayer would normally pay tax on this unearned income and they are over $250,000 in total income, then the tax would kick in. Typically the sale of a principal residence isn’t taxed so the “new” tax wouldn’t apply. It could however apply to someone who is holding the property for investment purposes. If that is the case the gain would be taxable, not the sales price.
If you are in the Central Pennsylvania area and are looking for a reliable, wise, kind and dependable accountant. I would strongly suggest:
Stephen P. Gift, CPA, CFP®, PFS