There are some wild claims going around about the new real estate tax that takes effect in 2013. The rumors are a combination true and false information.
Under the new health care bill, there will be a 3.8% sales tax on profits over the capital gains threshold ( not on all home sales).
The stories circulating online are: "If you sell a $400,000 home, there will be a $15,200 tax. This bill is set to screw the retiring generation, - who often downsize their homes."
In reality: The tax EXCLUDES the first $250,000 in profit from the sale of a personal residence, or the first $500,000 in the case of a married couple.
So if a couple paid $400,000 for their home and they sell it for $900,000 – they don’t pay this tax. It is only on the profits and only on profits over $250,000 or $500,000. Plus – you must have an annual income of more than $200,000 ( or $250,000 for a married couple).
Sure, none of us likes more taxes, even for health care. But at least you have the real story.