Thinking About Selling Your House After 2012?

I received an email from a past client today. He had received an email on the subject.

The email read, “Did you know that if you sell your house after 2012, you will pay a 3.8% sales tax on it?” The email goes on to blame the new Healthcare Law and all the damage it will do to the housing market.

Like many email hoaxes, it’s based on a partial truth. Within the new Healthcare Law there is a provision for a 3.8 percent capital gains tax on real estate sales. The reality is that this will not apply to many sellers. Currently the law allows an exception of up to $250k for single filers and $500k for a married couple filing jointly.

So while this will not apply to most sellers, I don’t think it’s a great idea. The main issue is that once they start the taxing it may be easier to move the bar down and tax more and more sales in order to generate revenue for the Federal government.

For the time being most sellers do not to be concerned about paying the 3.8 percent “Healthcare Tax” when they sell their homes. Sellers should always contact their CPA, tax preparer, or attorney if they have concerns or questions.

Base Photo licensed from iStockPhoto