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.

Post By Audeliz Angie Perez (160 Posts)

Angie Perez is a NJ Circle of Excellence award winning real estate agent for Re/Max Select in Westfield NJ. She sells anywhere from 12-25 houses per year on a consistent basis since 2005. Ms. Perez is primarily a buyer's agent on 60% of her real estate sales where she represents rental income investors, first time home buyers & trade up home buyers of 1-4 family homes within specific towns encompassing 4 NJ counties: Union, Essex, Middlesex and Somerset County. Many of Ms. Perez's clients appreciate her ability to negotiate favorable real estate deals for them. Many of her clients commented that her research abilities, her honesty, her knowledge of local market trends and her proficiency to manage multiple real estate transactions from start to close are some of the reasons why she was hired as their agent of choice. Please call, text or email Angie Perez to ask if she lists or sell in your town. If she can not help you, Ms. Perez would be more than happy to help or refer you to someone who can.

Website: → NJ Real Estate For Sale




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