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Do I Have to Pay a Real Estate Tax On My New Home In Prattville Alabama? Part 2
Do I Have to Pay a Real Estate Tax On My New Home In Prattville Alabama? Part 2
 
In yesterday's blog, we talked about the new Federal 3.8% Medicare tax on the capitol gains you make when you sell your home in Prattville, Montgomery, and the River Region, AL, and we used an example to see how the tax is calculated.  Then we asked what happens if the amount of capitol gains (profit) you make when you sell your home is over the $250,000 limit ($500,000 for married couples)?
That's where another rule, the income limit, applies.  The law says this new Federal Medicare tax only applies to people whose AGI (adjusted gross income) is more than $200,000 per year ($250,000 for married couples). So if you sell your house and make a profit of more than $250,000, then you need to look at your income to see if you'll have to pay the tax.  As long as your AGI, including the capitol gain you made when you sold your house, is at or under $200,000 ($250,000 for couples) then you won't have to pay the tax.  Let's look at an example:
Let's say when you sell your house you ... more

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