The 3.8% Sales tax is a myth?

According to a recent article published through the New York State Association of Realtors, recent e-mails circulating warn of a 3.8 % sales tax on all real estate sales starting in 2013 to help fund the health care program. I've seen these on line postings and have been commenting over time about them. This is a stretch of the truth according to Factcheck.org as pointed out in the article dated October 7th -- "Separating Internet myth from reality"



"the health care bill includes a provision that imposes a 3.8% Medicare tax for some high-income households that have "net investment income". Revenue collected by this tax is dedicated to the Medicare hospital insurance program."



The article goes on to say that the tax applies to households with an adjusted gross income (AGI) of more that $200,000 for individuals and more that $250,000 for married couples. "An additional tax obligation may result from the sale of real property because capital gains are included in the definition of the net investment income."

"Even if the AGI limits are met, the new tax would not be applied to capital gains that result from the sale of a home, since the existing home sale capital gains exclusion rule still applies - $250,000/individually and $500,000/couple. If the gain from the sale of the primary residence is below that amount, then NO Medicare tax will have to be paid. The new Medicare tax would apply only to a home sale gain realized in excess of the $250,00/$500,000 that pushes the AGI over the $200,000/$250,000 income limits."

Now, in particular with political elections around the corner, is a good time to ask for the truth from those running for office. Listen carefully to what they say.....

Affordable Rental in the Village of Millerton

A beautiful Home!

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