Jul 18, 2012
Ken Harney joins the 3.8% tax mythbusting
18 Jul 2012
Posted by Andrew Kantor
The Washington Post’s Ken Harney has an excellent piece explaining and debunking the “3.8% real estate tax” myth. Here’s a link to it in the LA Times.
Yes, there is a new 3.8% surtax that takes effect Jan. 1 on certain investment income of upper-income individuals — including some of their real estate transactions. But it’s not a transfer tax and not likely to affect the vast majority of homeowners who sell their primary residences next year.
In fact, unless you have an adjusted gross income of more than $200,000 as a single-filing taxpayer, or $250,000 for couples filing jointly ($125,000 if you’re married filing singly), you probably won’t be touched by the surtax at all….