The Affordable Care Act in March 2010, and people on all sides of the healthcare issue have been responding to various provisions included in the new law. Not all of the claims about the law have been accurate however and it's made it a challenge for those who really want to understand the changes.
One claim is that the health care bill contains a 4.0 percent "national real estate transfer tax" on home sales.
The truth is that there is a 3.8 percent Medicare tax, effective Jan. 1, 2013, for some high-income households with net investment income. With capital gains included in the definition of net investment income, an additional tax obligation might result from the sale of real property.
Even if the adjusted-gross-income limits were met by a home seller, the new tax would not be applied to capital gains that result from the sale of that home because the existing capital gain exclusion rule would still apply.
Click here to read the full PARJustListed article. Also, NAR has developed several resources to help explain these provisions to REALTORS including a comprehensive brochure. jroosevelt@kw.com
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