It's Back! Misinterpretations of the 3.8% Medicare Tax Persist

For all its problems, Obamacare does not impose the real estate transfer tax that the recurring viral email you may have seen says it does.  Here's a key line from the erroneous email:


"If you sell a $400,000 home, there will be a $15,200 tax." 


Fortunately, this simply isn't true. Yes, there is a new 3.8% tax, effective in 2013 unless Obamacare is overturned.  But it would apply to the gain on a sale, not the sales price!  And only to the portion of that gain in excess of the $250,000 (single) / $500,000 (married) gain exclusions!  And only for taxpayers whose adjusted gross income exceeds certain thresholds.  


For more details, here are links to two publications from the National Association of Realtors:


The 3.8 Tax: NAR's Q&A
The 3.8 Tax: NAR's Brochure


The last thing our struggling economy needs is more taxes, but misinformation is not the way to get them overturned. 


-David