One-sentence response to 3.8% tax myth

Let’s say you have a seller who asks you about the “3.8% real estate tax” myth. You want to debunk it, but you don’t want to start getting into too many details explaining that it’s a capital gains tax and only applies to rich folks, and so on.

Here’s a quick and simple response to “Is there a new 3.8% tax when I sell my home?”:

To an individual: If you sell it for a profit of more than $250,000, then maybe.

To a couple: If you sell it for a profit of more than $500,000, then maybe.

Then let them consider what they paid for their home, what they’re asking for it, and whether they’re gonna make that half mil. Our guess: Not a lot of folks are making that kind of profit.

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.
This entry was posted in The Buzz. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *