3.8% "Real Estate" Tax: What’s True, What’s Not
Realty World Heritage Realty - Blog — Many rumors have circulated the internet indicating the Health Care Reform Act contains a 3.8% tax on Real Estate. According to the National Association of Realtors(NAR), the tax does not Target Real Estate and will in fact affect very few home sales. For starters, the home sale would have to have a GAIN of $250,000 (single filer) and $500,000(joint filer) Capitol gains exclusion, to even be considered for the tax.
They would also have to fall into the category of earners above $200,000 (single) and $250,000 (joint). There are very few that will fall into both categories. Even then, it still has to be plugged into a formula to see if it is taxable. It would take a professional tax preparer/attorney to determine all these possible factors.
CLICK HERE to see the complete article by Robert Freedman in REALTORMag, including a video by the NAR explaining the bottom line of the tax.