3.8% Tax on Property Sales to fund Healthcare Bill?

    I can’t tell you how many times I’ve had people tell me this over the past few months, scared sellers telling me that there is going to be a 3.8% tax on the sale of their house in 2012 to pay for the health care bill.

    3.8 sales tax on home sales 2012I thought to myself the first time, “Now that would be stupid…” I know a lot of sellers who cant sell their house and pay off their mortgages, let alone pay an additional 3.8% tax to pay for a health care bill.

    I decided to do some research, since I was noticing a pretty heavy theme among some of my sellers and seller leads.

    Not wanting to read the mountain of Health Care legislation, I started with the path of least resistance, as my Friend Jeremy (who I will say, has a brain like a scientist) would say… your “Critical Path” (citing fancy engineering terms).

    My search lead me to Snopes. I use snopes.com EVERY time I get a forward saying the world is going to end, or that someone needs money because they are stranded, or a baby got hold of a nail gun [look them up, they all exist on snopes.com].  Snopes does a good job of cutting through the hype and finding the truth.  They did just that with this 3.8% property tax rumor.

    Snopes said (verify on their site), that the rumor is partially true.  YES, there is a 3.8% tax on profits OVER THE CAPITAL GAINS THRESHOLD, but no tax on ALL home sales.  I’m not a tax accountant or tax attorney, but there are profit limits for capital gains, when you exceed those limits ($250,000 profit for taxpayers filing a joint return) you may be subject to the 3.8% tax.

    Simply put: As long as you do not make more than the capital gains allowable (as 99% of all sales do), you will not pay the 3.8% tax. 

    Photo Credit: Soukup

     


    One Response to “3.8% Tax on Property Sales to fund Healthcare Bill?”

    • SpokaneHomeGuy

      Written on

      Hey Lynn Schmidt, I mentioned Jeremy in this post =)

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