Continuing to see MISinformation about the 3.8% real estate tax on ActiveRain

Wallace-

Most of my sales are income properties & 1031 Tax-Deferred Exchanges----you can bet I stay away from answering any tax questions------you might as well take a gun and point it to your own head--each individual has a tax liability different from anyone else---it's never a one-size-fits-all. I have a form that implicitly tells them to seek the advice of a CPA or Tax Attorney--no surprises on COE.

Don't forget that the capital gains taxes are going to go way up also if the current administration has their way.

It's just a first step down a slippery slope. If we continue down this slope we will become a nation of renters, as benefits of homeownership will continue to erode.

I have a problem with capital gains being paid on a home. You pay multiple taxes to build and buy a home. It changes hands multiple times over the years and the government wants to add a tax for capital gains?

You are righ tabout the info being incorrect, but hte fact that they want to add any tax to homes sales is just another problem of our over spending government.

I've not read the posts, but it must be annoying to read the same misinformation over and over again.  I read a lot of misinformation all the time.

Ignorance and gullibility are the building blocks that con men and politicians use to great success. It should come as no surprise that some percentage of people who happen to call themselves Realtors display both traits.

Tis the season of misinformation in election-land and both parties are masters of playing that game.  When one has grown up in a world devoted to  sound-bite attention spans, taking the time to understand complex topics like tax laws is mind numbing. Besides that, who has the time to analyze the arguments and data being presented by both sides? Just watch TV or listen to the radio and someone will tell you what to think.

Anyone who asks a question about capital gains, I tell them to go and ask an accountant.  I have enough to worry about without knowing what tax laws affect their purchase or sale outside of property taxes.  I haven't read any of the posts to which you speak, but it would be interesting to see them :).

It's funny how automatic some of the comments are.  Right when taxes are mentioned many run for the hills and are afraid to talk about them. 

I think your point was that a real estate professional should be aware of and be able to talk about how taxes affect real estate transactions.  If one is going to write about the topic, be informed and know what you are talking about.  

Others  just refuse to approach the topic.  I think that's bad also.  One should be able to talk in general about the tax consequences and then make sure you advise them to seek a professional for their particular situation.

Wallace, it seems that everyone and their brother thinks that home buyers, sellers and real estate agents will ALL have to pay an additional 3.8% tax. Thanks for clearing this up!

Scares me to think that many of these mis-informed agents are representing out Profession!

Thank you Wallace.

As Forbes says: The new (2013) home sales tax applies only to couples who sell a personal residence: they can exclude the first $500,000 in profit from tax ($250,000 for singles). That would be profit from a home sale, not proceeds. So a couple that bought a house for $100,000 and sold it for $599,000 would owe no tax, even under the new law.

Wallace, 

Great point - that we shouldn't be scaring the public.  However, just tired of having more complexity added onto our plate that only benefits the government and accountants!

All the best, Michelle