PLEASE STOP FORWARDING ME THE "3.8% SALES TAX ON REAL ESTATE" EMAIL!
There will be no 3.8% "sales tax" on real estate in 2103.
There will however be a 3.8% capital gains tax.
Congress approved, and the president signed a bill authorizing a 3.8% tax on the capital gains on real estate transactions over the existing $500,000 exemption for married couples ($250,000 for singles). Couples have to make more than $250,000 in adjusted gross income for the tax to apply to them (singles more than $200,000).
This tax WILL NOT affect all taxpayers as the viral emails (and Facebook posts) suggest. Only those homeowners who experience a taxable gain when they sell and/or those whose adjusted gross income exceeds the limits referenced above will pay the tax. Of course, the taxpayer will have to pay the 3.8% in addition to the existing capital gains tax. Current Capital Gains Tax Rates range from 5% to 39.6% depending on how the "gain" is classified by the IRS.
See for yourself on page 946: http://housedocs.house.gov/energycommerce/ppacacon.pdf.
If your reputation and credibility are important to you, please forward your emails with care. Reckless forwarding of incorrect information is akin to gossip, and no one respects a gossip. Email facts can be checked at TruthorFiction.com or Snopes.com
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