And again, NAR debunks the 3.8% tax myth

Once again again again, NAR has information debunking the “3.8% real estate tax” myth. This time it’s a video.

image As we keep telling you, there is no new real estate tax. Period. The Medicare tax that this is referring to…

A) is for people who earned more than $200,000 (individuals) or $250,000 (married couples), and

B) excludes the first $250,000 ($500K for couples) in the sale of a principle residence.

So yeah, it’s technically possible it would apply to a real estate transaction — if a rich couple sells a home for more than a half-million-dollar profit. (Note: that’s profit, not price.) But realistically? No.

And the note circulating about it being a tax on every real estate transaction? Blatantly false. (The part about NAR being “all over it” is true — it’s all over debunking it.)

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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One Response to And again, NAR debunks the 3.8% tax myth

  1. This video is actually the best explanation I’ve seen. A lot of the literature and articles have said it’s not a tax. It IS a tax, it’s simply a nominal amount that will only effect uber-successful people. They mention that it will effect less than 1-2% – which seems to ring as a suspect number in regards to something… something, oh YES! Now I remember, I’ve read “1%” on a few protest signs in the past year or so. Hmmmm… Political much?

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