Maybe because it is tax time the elegit 3.8% sales tax on the sale of a home built into the health care reform law is circulating on the internet again. For example, there are articles claiming if an ordinary home owner sells his home for $400,000 he will pay a 3.8% sales tax of $15,200. Like Obama care or not, this is just not true.
There will be an additional tax that be
gins in 2013 that only affects a very narrow band of investment income for high-wealth households, those who earn $250,000 in a joint return or $200,000 as an individual. In real estate, the tax could come into play on the sale of a house, but only if the sales gain is more than $500,000 for a married couple or $250,000 for an individual.
As has been the case for some years, the profit on the sale of a primary residence lived in for 2 of the last 5 years, is not taxed if the net profit does not exceed $250,000 for an individual or $500,000 for a married couple. This is still the case. The change now is a married couple making more than $250,000 or an individual making $200,000 in annual adjusted gross income would pay a 3.8% tax on the profit exceeding the maximum already in place. If you would like to read further on this check out the brochure created by National Association of Realtors.
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