My company and I have received many calls recently from our clients about the 3.8% tax to be imposed on the sale of one’s home. Please read the law below for clarification.
New healthcare reform law does not alter capital gains exclusions
Misinformation has been circulating again on the Internet and in e-mails recently that the healthcare reform bill passed last year includes a sales tax on real estate. This information is incorrect, and C.A.R. would like to clarify the information. The new law imposes a 3.8 percent tax for households in the top tax brackets on “unearned income.” This includes capital gains. However, this will not impact the exclusion on capital gains earned from the sale of a primary residence up to $250,000 for individuals and up to $500,000 for married couples. The 3.8 percent tax will only apply to capital gains above the normal exclusion.