Info from the New Jersey Association of Realtors and the National Association of Realtors...
Help Correct the Misinformation about the Federal Health Care Law
In response to numerous e-mails concerning provisions of the new federal health care law stating that there is a new 3.8% federal realty transfer fee (RTF) on all home sales, NJAR® urges you to visit the Government Affairs website and NAR’s website for information regarding RUMORS that a national RTF was created as part of the federal health care law. These rumors are FALSE. An across-the-board RTF DOES NOT exist as part of this or any other law. As part of the federal health care law, a 3.8% Medicare tax was enacted on net investment incomes for certain households (for individuals earning over $200,000 per year and couples earning over $250,000 per year). Furthermore, the 3.8% tax DOES NOT apply to all capital gains from a home sale. Only if the gain from the sale is over $250,000 for individuals or $500,000 for couples does the 3.8% tax apply. If the amount made from the sale as a gain is less than $250,000 for individuals or $500,000 for couples, the 3.8% tax does not have to be paid. Lastly, the 3.8% tax, if these provisions are met, does not take effect until January 1, 2013.