PLEASE STOP FORWARDING ME THE "3.8% SALES TAX ON REAL ESTATE" EMAIL!
There will be no 3.8% "sales tax" on real estate in 2103.
There will however be a 3.8% capital gains tax.
Congress approved, and the president signed a bill authorizing a 3.8% tax on the capital gains on real estate transactions over the existing $500,000 exemption for married couples ($250,000 for singles). Couples have to make more than $250,000 in adjusted gross income for the tax to apply to them (singles more than $200,000).
This tax WILL NOT affect all taxpayers as the viral emails (and Facebook posts) suggest. Only those homeowners who experience a taxable gain when they sell and/or those whose adjusted gross income exceeds the limits referenced above will pay the tax. Of course, the taxpayer will have to pay the 3.8% in addition to the existing capital gains tax. Current Capital Gains Tax Rates range from 5% to 39.6% depending on how the "gain" is classified by the IRS.
If your reputation and credibility are important to you, please forward your emails with care. Reckless forwarding of incorrect information is akin to gossip, and no one respects a gossip. Email facts can be checked at TruthorFiction.com or Snopes.com
Text or Phone: 270-903-2167
Owensboro, Kentucky 42301