Rumors are circulating on the net about a 3.8% federal sales tax on real estate transactions as part of the Obama health care bill.
The new tax is a 3.8% medicare tax on certain types of unearned income and will apply to certain types of real estate transactions. For example, if someone has to pay capital gains on a sale of real estate, this will be an extra 3.8% tax. For a primary residence, this would be after the first $250k of gain ($500k) for married couple.
For a second home or investment property, there is no $250/$500k capital gains exclusion. Also, the Obama Health Care Plan Real Estate Sales Tax only applies if the taxpayer(s) total income exceeds $200k.
Another interesting point, the capital gains tax is now 15%. In 2011, the capital gains tax will go up to 20%. In 2013, with this Medicare tax, the total will be 23.8% for some real estate sellers. This is a big change. 15% now to possibly 23.8% on some real estate sales transactions in 2013.
Powered by Facebook Comments