The Truth about the 3.8%, 2013 Real Estate "Sales Tax"

3.8% real estate sales taxPLEASE 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.

See for yourself on page 946: http://housedocs.house.gov/energycommerce/ppacacon.pdf.

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

 http://www.karenpannell.com

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Comment balloon 1 commentKaren Pannell • July 18 2012 01:09PM

Comments

Karen good post, I am also tired of people responding to these emails as if this has not been discussed and written about extensively already. NAR posted a whole explanation of this when it was first raised as being a new tax on real estate.

Posted by Nick Vandekar, 610-203-4543, Tredyffrin Easttown Realtor, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) about 7 years ago

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