3.8% Tax on Real Estate Sales - Get the Facts

By
Real Estate Agent with RE/MAX Elite Properties; Serving Cypress, Spring, Tomball, NW Houston 0260862

3.8% Tax on Real Estate Sales - Get the Facts


Rumor: There is a 3.8% federal tax on all home sales effective January 1, 2013.


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According to a recent post by the Texas Association of Realtors and also information put out by the National Association of Realtors . . . . .

Fact:  Effective January 1, 2013, a 3.8% tax will be placed on some home sales, but not all home sales.

Fact:  From the sale of a primary residence, an individual making over $200,000 a year, will have to pay a 3.8% tax on any profits over $250,000.  

Fact:  From the sale of a primary residence, a married couple making over $250,000 a year, will have to pay a 3.8% tax on any  profits over $500,000.


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Example:  An individual making over $200,000 a year and who sells their primary residence, making a profit of $260,000 or more, would have to pay $380.00.  ($260,000 - $250,000 = $10,000 x 3.8% = $380.00)

Example:  An individual making over $200,000 a year and who sells their primary residence, making a profit of $270,000 or more, would have to pay $760.00.  ($270,000 - $250,000 = $20,000 x 3.8% = $760.00)


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Example:  A couple making over $250,000 a year and who sell their primary residence, making a profit of $510,000 or more, would have to pay $380.00.  ($520,000 - $500,000 = $10,000 x 3.8% = $380.00)

Example:  A couple making over $250,000 a year and who sell their primary residence, making a profit of $520,000 or more, would have to pay $760.00.  ($520,000 - $500,000 = $20,000 x 3.8% = $760.00)


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3.8% Tax on Real Estate Sales - Get the Facts

Download and read the brochure published by NAR (National Association of Realtors).





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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Jennifer Green 02/17/2012 01:54 PM
Topic:
ActiveRain Community
Location:
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Groups:
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Texas Real Estate
Tags:
38 tax on home sales
38 real estate tax
2013
38 tax on real estate
tax effective january 1

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Rainmaker
856,626
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

This does not sound so bad now but literally in a few years it will be all transactions.

Feb 17, 2012 01:32 PM #1
Ambassador
1,155,745
Bryan Robertson
Los Altos, CA

This law has made headlines for a long time and it's really only likely to impact a very small portion of the population.  I expect to see a few deals in my area (Silicon Valley) where this tax kicks in but not too many.

Feb 17, 2012 10:04 PM #2
Ambassador
1,709,615
Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy and evening Joyce

Joyce my friend, this is such a mighty fine blog post on and brake down of the up coming 3.8% home sales tax.

Have a good one
Dale in New Hampshire

Feb 18, 2012 11:23 AM #3
Rainmaker
501,394
Sonja Patterson
Keller Williams - BV - College Station, TX
Texas Monthly 5-Star Realtor Recipient for the Hou

Joyce, thanks for sharing the facts!  I cannot see many sellers making that kind of a profit on their homes with the market being what it is right now.  Maybe down the road...  :)

Feb 26, 2012 11:20 AM #4
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Rainmaker
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Joyce Godwin, Realtor, CRS

RE/MAX Elite Properties
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