Oct 09, 2012
And again, NAR debunks the 3.8% tax myth
09 Oct 2012
Posted by Andrew Kantor
Once again again again, NAR has information debunking the “3.8% real estate tax” myth. This time it’s a video.
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.)