Stanislaus County Short Sales- Will you pay a 3.8% Tax on your Sale?
There is currently a lot of misinformation going around about a new tax that SOME sellers may have to pay when selling their homes even in a Stanislaus County Short Sale. People want to know if they are going to have to pay this new tax when they sell their Stanislaus County Home. The short answer is: 
Probably not.
This new tax is part of the Health Care Bill. Yes that's right it is part of the Health Care Bill. I'm not sure what this actually has to do with Health Care but I try not to figure out how things actually get done in Washington. And how did they come up with a number like 3.8%?
The tax is a tax on capital gains so if you are selling your home in a Stansislaus County Short sale you probably won't have capital gains on the sale. (But just to be sure consult your accountant) According to an article from the National Association of Realtors if all your sources of income add up to less than $200,000 ($250,000 on a joint tax return) you will NOT be subject to the 3.8% tax.
If you do sell your home and have capital gains you will still receive the full benefit of the $250,000 (or $500,000 joint tax return) exclusion on the sale of the home. Now if your total income is more than 
the $200,000 or $250,000 limit you will still only pay the tax on the amount over those limits not the entire $200,000.
There is a lot of misinformation out there about this tax. I'm sure it is even keeping some people from selling their homes. It looks like it's not going to affect most sellers at this time. For more detailed information about this new 3.8% tax be sure to read the NAR article "Top 10 things You Need to Know About the 3.8% Tax."
If you have questions about this new tax or are facing foreclosure and are not sure what to do give me, JIM PATTON, a call at 209-633-2839 and we can discuss if a Stanislaus County Short Sale is right for you. I look forward to hearing from you.
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