It has come to my attention that there is some bad info going around about a 3.8 percent tax on real estate transactions. Here's a sample of what is floating around out there.
"Under the new health care bill - did you know that all real estate transactions are now subject to a 3.8% Sales Tax? The bulk of these new taxes don't kick in until 2013 (presumably after Obamas re-election). You can thank Nancy, Harry and Barack and your local Democrat Congressman for this one. If you sell your $400,000 home, there will be a $15,200 tax. This bill is set to screw the retiring generation who often downsize their homes. Is this Hope & Change great or what? Oh, you weren't aware this was in the Obamacare bill? Guess what, you aren't alone. There are more than a few Congressman that aren't aware of it either. AND, there are a few other surprises lurking."
Well, that's not completely true. In fact, about the only part that is correct is the 3.8 percent. Here's what Snopes has to say about it, calling it 'mostly false."
"The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home."
Please keep in mind the health care bill is loaded with these kind of provisions. It's a complicated bill with complicated details. And remember, please send me any of these alerts to help find out the validity at GAD@NSCAR.net.