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3.8% Sales Tax on the Sale of your Home after 2012
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Health Care Reform
3.8% Sales Tax on the Sale of your Home after 2012
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We are planning to sell our home in the fall. My wife and I are both retired and are looking to down size and supplement our retirement with the difference in the sale of our house and the purcha
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Cat:91a4afbf-9555-4e02-b9d3-9eef604476f6Forum:8717bffd-6c93-46d9-bddd-a49d5e76e2be
Cat:91a4afbf-9555-4e02-b9d3-9eef604476f6Forum:8717bffd-6c93-46d9-bddd-a49d5e76e2beDiscussion:70380df9-bc8e-4fc8-bfc1-989c2024302e
Forums » Health » Health Care Reform » 3.8% Sales Tax on the Sale of your Home after 2012
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3.8% Sales Tax on the Sale of your Home after 2012
posted at March 5, 2012 3:19 PM EST
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Posts: 1
First: March 5, 2012 Last: March 5, 2012 |
We are planning to sell our home in the fall. My wife and I are both retired and are looking to down size and supplement our retirement with the difference in the sale of our house and the purchase of one. Our realtor told us "that if you sell your house after 2012 you will pay a 3.8% sales tax on it? Under the new health care bill all real estate transactions will be subject to a 3.8% Sales Tax." Does any one know the truth to this? This will have a tremendous affnegative affect on all seniors selling their homes. |
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Re: 3.8% Sales Tax on the Sale of your Home after 2012
posted at March 6, 2012 10:15 PM EST
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Posts: 1923
First: November 27, 2011 Last: May 18, 2013 |
In Response to 3.8% Sales Tax on the Sale of your Home after 2012: We are planning to sell our home in the fall. My wife and I are both retired and are looking to down size and supplement our retirement with the difference in the sale of our house and the purchase of one. Our realtor told us " that if you sell your house after 2012 you will pay a 3.8% sales tax on it? Under the new health care bill all real estate transactions will be subject to a 3.8% Sales Tax." Does any one know the truth to this? This will have a tremendous affnegative affect on all seniors selling their homes. Posted by perez6088 A LOT of misinformation out there - True, there is a 3.8% tax but not the way your agent describes it. (I take this from the summary of Obamacare on the Kaiser Family Foundation website - the link is below) The law says • Increase the Medicare Part A (hospital insurance) tax rate on wages by 0.9% (from 1.45% to 2.35%) on earnings over $200,000 for individual taxpayers and $250,000 for married couples filing jointly and impose a 3.8% tax on unearned income for higher-income taxpayers (thresholds are not indexed). (Effective January 1, 2013) Kaiser Family Foundation Summary of PPACA Currently on the sale of your PRIMARY residence, a couple can realize a GAIN of $ 500,000 (or $ 250,000, if single) and have NO tax consequences. But In theory, this could include a gain on home. However, if you live in and own a home for 2 of the 5 years before you sell, the first $250,000 in gain ($500,000 if married) is completely tax free. If you have a lot of unearned income (investment income) - real estate holdings, interest, dividends and your income is AT or OVER this high income threshold, then you will be taxed on your gain that you earn over those limits shown above: i.e. the first $250,000 in gain ($500,000 if married). Remember this is GAIN (profit) not what you sell it for. I'm gonna guess that you won't be affected cause those that might be wouldn't be coming to a message board asking the question - but I could be wrong. |
Forums » Health » Health Care Reform » 3.8% Sales Tax on the Sale of your Home after 2012
