Oct 11, 2012
One-sentence response to 3.8% tax myth
11 Oct 2012
Posted by Andrew Kantor
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.