Several folks have asked and now we have an answer. Yes, if you are part of the evil rich class whose income will be more than $200,000 in the year you property – YES even your homestead – you might be looking at a 3.8% tax in 2013.
The Health Care and Education Reconciliation Act of 2010, which President Obama signed into law March 30, contains a Section 1402, “Unearned Income Medicare Contribution,” which imposes a 3.8 percent tax on profits from the sale of real estate — residential or investment. This fee is targeted at high-income taxpayers.
Although not exactly a sales tax, nor a transfer tax, it does apply when you SELL, thus transferring ownership of property. They call it a Medicare tax because the money received will be allocated to the Medicare Trust Fund – part of the Social Security system.
How to calculate this new tax? You or your account will need to us ObamaCare’s complex formula to determine which is less: the gain you have made on the sale of your house, or the amount by which your income exceeds certain thresholds. Yipppeee!!!!
By the way…It also appears to apply to investment income and dividends. This is NOT going to help higher end property sales.
- The Bank Slayer
