3.8 Percent Real Estate Tax – Dispelling the Myth
Many folks have been calling and asking questions regarding the new 3.8% real estate tax. Will this affect most home sales? Will the average seller who already has a problem selling their home be charged a tax on top of it? Here's what you need to know. The National Association of Realtors have likened the 3.8% tax to a bad internet rumor. While there is a lot of information out there. Much of it is apparently not accurate. We've broken it down for you with a quick couple of Q&A's below.
Question: Will the 3.8 sales tax affect the sale of my home?
Answer: No, not unless you are in a tax bracket of an annual income of $250,000. Even if your annual income exceeds $250,000 your capital gain on the sale of the house has to EXCEED a $250,000-$500,000 capital gain exclusion.
Question: When does the sales tax take affect?
Answer: The 3.8% tax takes effect in 2013 but it's impact will not be made until 2014.
If you want to see the tax broken down by the National Association of Realtors and what it all means, you can watch the video below.