Truth about the 3.8% Sales Tax

With Obamacare moving full steam ahead, there are a lot of rumors and emails floating around about the “3.8% sales tax” that will be imposed on the sale of a home as of January 1, 2013. The fact is that there will be a 3.8% tax but it will be on the “unearned income” of high income earners – this means capital gains taxes above the exemption amounts allowed ($250K for single, $500K for married).

National Association of Realtors has a good set of FAQ’s that will walk you and your client through how this new tax works: http://www.realtor.org/small_business_health_coverage.nsf/Pages/health_ref_faq_med_tax

Finally, NAR has also put together a brochure that walks through 8 different scenarios under which a person could be taxed: http://www.realtor.org/small_business_health_coverage.nsf/docfiles/government_affairs_invest
_inc_tax_broch.pdf/$FILE/government_affairs_invest_inc_tax_broch.pdf.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s