Has anyone heard about a new law going into effect end 2013 or 2014 regarding selling 'penalty' ?
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(0) | asked by: Richard Fox | share | 64 months ago | Report
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Yes, I've heard about it, but it won't apply to sellers across the board. It only applies to individuals who make $200k+ or above.
This will be a wait and see game. I think once the end of the year draws nearer...we will learn more about what everyone voted for with the new Health Care. My thoughts are this will be looked into by our Law makers further.
Unfortunately, much of the information widely circulated about a tax on home sales and other real estate transactions inaccurately describes the purpose and the effect of this provision. The 3.8 percent Medicare tax is often misunderstood, and has frequently been described as a 3.8 percent “sales tax” on all real estate transactions, which is inaccurate. The provision that establishes this tax can be found on page 946, Section 1402 of the Affordable Care Act. This tax is often referred to as the “Medicare tax,” because it was designed to raise funds for Medicare. The Medicare tax goes into effect after December 30, 2012. The Medicare tax is not a tax on all new home sales; it only applies to the profit that certain high income Americans make from the sale of their home. The groups that may be affected by this provision are individuals with annual incomes over $200,000 and married couples with a joint income of over $250,000. The only home sellers who will be affected by this provision are those who fit the above description, and who sell their home for a profit of more than $250,000. The tax will not apply to the first $250,000 in profits for the individual selling his or her home or to the first $500,000 in profits for a married couple.
answer by Richard Fox
Thank you Kirk, do you know when this is effective?
In the health care bill there is a sales tax on your home, This money will be used the pay for the health care bill.
The government has been talking about some new taxes for sellers, has not made it anywhere yet. I think they know that will hurt the economy if they pass something like that.
Any "penalties" usually come in the form of increased transfer & recording taxes, increased fees, etc. These could be passed by either the state or the local level. However, I have not heard of any particular "penalty" for simply selling a property.
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