Have you heard grumbling in the real estate community about the alleged affect the healthcare law will have on real estate taxes?
Yes. (70%, 217 Votes)
No. (30%, 93 Votes)
Total Voters: 310
Rumor has it the healthcare law recently upheld by the U.S. Supreme Court will adversely affect sellers of real estate, causing them to pay a 3.8% surtax on their home sale.
There is a grain of truth to this gossip, though it will affect very few homeowners.
Effective January 1, 2013, single-filing taxpayers with an adjusted gross incomeNet income and profits from all three income categories (trade or business, passive and portfolio) (AGINet income and profits from all three income categories (trade or business, passive and portfolio)) greater than $200,000 and couples filing jointly with an AGINet income and profits from all three income categories (trade or business, passive and portfolio) more than $250,000 will be subject to the new 3.8% surtax on any capital gains on investment income exceeding a prescribed threshold.
If the capital gain realized on the sale exceeds the principal residence profit exclusion limit of $250,000 for single-filers and $500,000 for joint-filers, the amount exceeding the threshold will be taxed at 3.8%.[Internal Revenue Code §121]
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