Yet again, NAR debunks "3.8% tax"

People are still not getting it, so NAR has put out yet another debunking of the “3.8% real estate tax” myth that continues to circulate.

This one is a one-pager that explains (again) what this Medicare capital gains tax is, and why it hardly ever will apply to real estate:

The 3.8% tax will NEVER be collected as a transfer tax on real estate of any type, so you’ll NEVER pay this tax at the time that you purchase a home or other investment

You’ll NEVER pay this tax at settlement when you sell your home or investment property.  Any capital gain you realize at settlement is just one component of that year’s gross income.

Please help debunk this myth. We keep having to explain it, and we keep getting mail to the effect of “I received this from one of my agents? Is it true?” referring to a frantic message about ‘a new tax on the sale of every house!!!’


Click here to view and print the one-page NAR flyer that explains things.

And click here to download a hi-res poster you can stick on your office fridge.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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