Real Estate Sense: Medicare Tax on Real Estate Sales????
Medicare Tax on Real Estate Sales????
There have been a lot of "rumors", "stories", "prognostications" regarding President Obama's plan to hit us all with yet another tax. The one I'm referring to here is the so called Medicare Tax. The talk is that every house that gets sold, starting in 2013 will be taxed at a rate of 3.8% of the sale price.
It is, as I understand it proposed to be an "investment income tax", which may or may not be real estate related or attached to the sale of a property.
From what I am reading, and I could be wrong, and if I am I would appreciate your enlightening me... If you sell your home for a profit of more than $250,000 as an individual, or a profit of more than $500,000 for a joint filing, then you would be required to pay a tax of 3.8% of any profit OVER that threshold. So, if a couple sold a house and made a profit of 501,000, they would owe a tax equal to 3.8% of $1,000. That'd be $38.00.
My personal view is that the majority of the persons we work with won't fall into that category.
Still, it rankles me that this proposal finds it's way in front of us. It's a typical "tax the rich" liberal left solution to solve our financial woes?