Twin Cities Real Estate

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Sunday, July 01, 2012

Is There a 3.8% Health Care Sales Tax on Real Estate?

The 3.8% real estate sales tax rumor is mostly false.
There's a popular rumor being circulated that starting January 1, 2013, the health care reform bill will add a sales tax to all home sales. NOT TRUE.
Now, before I go into details, a caveat -- I am NOT a tax expert! Consult your tax professional for the details on how your taxes could be affected.
Who/what will be taxed:
Adjusted Gross Income (AGI)
  • above $250,000 AGI married filing jointly
  • above $200,000 AGI for single filers
Taxed Amount (principal residence home sales)
  • gains above $500,000 if married filing jointly
  • gains above $250,000 for single filers
For more details on the tax, including examples for various scenarios, a brochure is available from the National Association of Realtors.

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