There’s nothing like misinformation to cause confusion and despair.
The popular story we’ve heard circulating a lot is that—starting January 1st, 2013—anyone selling a home in this country will be hit with a new 3.8% tax to help pay for President Obama’s new healthcare plan.
It’s true that the new tax does take effect with the start of the new year, and it’s true that some real estate sales will be subject to the tax. But it’s not a real estate tax, per se, and many people selling homes will not have to pay the tax.
So, just what is it?
“It” is a tax on some investment income. Interest, dividends, rent and capital gains will be subject to the tax, but only for people whose adjusted gross income is above $200,000, or couples who file jointly and whose AGI is above $250,000.
If you’d like information that makes this tax more understandable, check out this one page flyer showing the Top Ten Things You Need To Know About The Tax.
Hopefully, these facts will show that—while the tax is real and it’s about to take effect—its scope is more limited than many people have been led to believe.