Wednesday, September 22, 2010

New 3.8% Tax scare

New tax on home sale profits-


Just to clarify something you may have heard or received in an email about.


There has been talk about a 3.8% tax on any profit made on a home sale which was hidden in the recent health bill. For example, if someone sold their home for $350,000 and, after closing costs, had a profit of $100,000, $3,800 would go to Uncle Sam. As I understand it, this is NOT true. This tax only applies to any one individual making over $200,000 a year (or $250,000 if filed jointly) and only if that profit exceeds $250,000 (or $500,000 if filed jointly). Any profit made after the initial $250,000 will then be hit with the 3.8%.

So, if a single person that makes $201,000 a year sells a piece of ABQ Real Estate and walks with $350,000, he/she will have to pay the $3,800 ($350,000 - $250,000 = $100,000 x 3.8% = $3,800). This is how I understand it. If you need further clarification, please consult your CPA.

This all just seems to be another media scare tactic. If you receive any type of email that you find hard to believe, I suggest researching it before you share it with your friends.

Thanks!!

by Tim Fish

1 comment:

Admin said...

Yep, just the wingnuts trying to make the health care reform into a bad thing instead of the best thing that we've ever passed. :-)