Apr 14, 2010
Mythbusting, VAR style: There is no new real estate tax
14 Apr 2010
Posted by Andrew Kantor
For whatever reason, some people are spreading a rumor that there’s some sort of new real estate tax in the recently-passed healthcare bill.
So let’s be clear: It ain’t so. There is no new real estate tax, nor transfer tax, nor anything of the sort. Got it?
Where did this come from? The healthcare bill includes a 3.8% Medicare tax on “net investment income” (read:capital gains) for high income households.
So if you earn more than $200,000 per year ($250,000 if you’re married), and if you sold a house for a profit of more than $250,000, then the tax would apply to you. (Once again, that’s a quarter million bucks profit, not sale price.)
In other words, there are theoretically people out there for whom this applies, but how many folks do you know earning $250,000 profit on a home sale these days?
Want more detail? NAR’s all over that with a Web site dedicated to the healthcare bill. Check it out.