Recently I have been getting emails from my clients asking what is going on with the “TAX” on home sales. I was extreamly concerend about it and at first just as worried as the rest. After I took some time to find the facts I do feel a little better. I still think it opens the door to people to grab more “cookies” from the cookie ja. For now I think the average homeowner here in hampton roads could be spared a massive tax. Here are the questions that will be answered at Realtor.com
Q-1: Is there a 3.8% real estate “sales tax” or a transfer tax created in health care bill?
Q-2: So who will be subject to the new tax? When is it effective?
Q-3: Who is a “High Income” Taxpayer?
Q-4: Are the $200,000 and $250,000 thresholds indexed for inflation?
Q-5: What is “unearned” net investment income?
Q-6: So the new tax will apply to rents from investment properties that I own?
Q-7: Does the tax apply to the yearly appreciation of an asset?
Q-8: How is the new 3.8% Medicare tax calculated?
Q-9: Give me an example.
Q-10: Will the $250,000/$500,000 exclusion on the sale of a principal residence continue to apply?
Q-11: Will the 3.8% tax apply to any part of the gain on the sale of a principal residence?
Q-12: Is rent from a vacation home subject to the 3.8% tax? And what about the gain on sale of a vacation or rental property?
Q-13: My rental property generates a net loss each year. How will those losses be factored into the new tax? And what if I have net capital losses when I sell?
Q-14: I earn all of my income from real estate investments that I own and operate myself. Will my rents and gains be subject to the new tax?
Q-15: Will “High Income Filers” lose any portion of the Mortgage Interest Deduction?
Q-16: Why is this new tax called a “Medicare tax?”
Q-17: How will this new tax affect marginal (the highest) tax rates when it is combined with existing law and with the possible expiration of the Bush tax cuts enacted in 2001?