A frequent misconception about the new tax on real estate
Almost every week I get an email from a client or a relative asking if a "chain" letter they have received about the new tax on real estate that Obama Care is going to levy upon the sale of real estate starting in 2013 is true. I am not an accountant and give you this information just as a simple answer to the misconception. Understand that, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.
Fact Check.org explains it this way:
The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home.
Now, I don't know about you but if I make a profit of $500,000 on my home I will gladly pay the government a 3.8% tax on the amount over $500,000. We should all be so lucky.....With what has happened to the real estate market in the last three years I don't too many of us will be subject to the tax.
As with any of your real estate questions, please give us a call and we'll be happy to discuss it with you. If we don't know the answer we will find someone who does.