Health Law’s Real Estate Surtax Will Touch Very Few Transactions
Los Angeles Times: Health Care Law's Surtax Could Affect A Few Home Sellers In 2013
When the Supreme Court upheld the health care reform law on federal tax grounds, it re-stoked a housing issue that had been relatively quiet for the last year: The alleged 3.8 percent "real estate tax" on home sales beginning in 2013 that is buried in the legislation. ... In case you've heard rumors or received worrisome emails about any of this, here's a quick primer: Yes, there is a new 3.8 percent surtax that takes effect Jan. 1 on certain investment income of upper-income individuals -- including some of their real estate transactions. But it's not a transfer tax and not likely to affect the vast majority of homeowners who sell their primary residences next year. In fact, unless you have an adjusted gross income of more than $200,000 as a single-filing taxpayer, or $250,000 for couples filing jointly ($125,000 if you're married filing singly), you probably won't be touched by the surtax at all (Harney, 7/14).