There were many emails being tossed around in the wake of the passage of Obamacare. It seemed that every couple of days a new outrageous facet of the act was revealed. Many of us recall receiving email ALERTS for months after the passage of the bill. One email effort called out a NEW hidden 3.8% sales tax on real estate to fund Medicare. Depending on the source of the email you received, the details of the tax were a bit ambiguous. Fact checking websites claimed that the tax affected very few Americans and it primarily targeted the very wealthy. See below for the breakdown of those affected by the tax:
- The tax applies to singles w/ income > $200,000 or married couples (filing jointly) w/ income > $250,000. The tax does not apply to those making less (for any real estate transaction).
- The tax applies to profits above and beyond $250,000 (single) or $500,000 (jointly) from a primary residence. Two years residence status applies.
- The tax applies to any profit from a second home, rental property or other investment property.
The conditions seem to imply that the tax would apply to very few, “wealthy” Americans. What this tax is doing is nickel and diming the American people who keep a lot of their wealth in their homes. The government is counting on the fact that we won’t do our research to understand this tax and that we won’t complain since we will only be taxed if a profit is being made. We did our research to help you get the TRUTH.