Will the State Impose a Tax on Real Estate Deals?

There have been a lot of “rumors” and e-mails saying all real estate transactions will be subject to a 3.8% sales tax and that the Democrats inserted this at the last minute into the recent health-care legislation that just passed. 

Some of that is true. 

There is a new federal real estate tax that will help pay for Medicare, but it only applies  to sellers making more than $200,000 per year or $250,000 for couples. 

A recent Washington Post article created a fictional couple with a joint income of $300,000 (over the $250,000 limit) that made a $600,000 profit on a home sale. In the example, the couple could pay a new real estate tax equal to about $1,900. 

If you disagree with this new tax, I would suggest reaching out to your local political representatives and voice your concerns.