Much Ado About
With ObamaCare set to take effect the next year(?), rumors are flying in the real estate community that the new federal health care law will impose a 3.8% federal tax on the sale of all homes.
The answer’s not clear at the moment.
But what is clear is that the nature of the tax (if any) is being wildly misconstrued.
That’s because the tax is on capital gains, and only once the Seller’s gain exceeds $250,000 (individual) or $500,000 (married).
Bottom line: something like 1% (or fewer) of all home sellers are expected to be effected.