3.8% Sales Tax - Know Your Facts
3.8% Sales Tax - Know Your Facts
Yet another email is circulating to panic real estate professionals. This one is in regards to the 3.8% sales tax that Congress slipped into the giant Health Care Reform bill (overview can be found here), with this tax to take effect in 2013.
It's important to check for yourself what the truth is. only on a net gain above $250,000 for a single person, and $500,000 of a married couple. So you’d have to be clearing, as a single person, more than $250,000 on the sale of your primary residence, and then you’re taxed on the amount above $250,000 (if you had $300,000 in equity you’d pay tax on $50,000) or if you’re married, you wouldn’t be paying anything because the entire property sale is less than $500,000. Vacation and rental properties are excluded from the first $250K/$500K so any net gain would be subject.
Click here for the link to factcheck.org's explanation.
