Misinformation is being disseminated nationally (mostly via forwarded e-mails) that the new health care bill imposes a 3.8% sales tax on ALL real estate transactions. This is incorrect.

In this case, the misinformation can be very detrimental to our real estate industry and may already be causing  some consumers not to buy or sell real estate. Let’s get the right information out there so that our customers can make a more informed decision as to their finances and their real estate transactions.

Here is the real “skinny” to help get your buyers and sellers off the fence and in the game!

The new health care bill does provide  a new 3.8% Medicare tax  starting in 2013 for “high earners”. The Medicare tax is not a sales tax, nor does it apply to all real estate transactions. It is a tax on investment income only for high earning individuals specified in the bill.

Here are the primary reasons this taxing provision would  rarely be an issue in a real estate sale: Only 3% of American households have incomes that exceed the investment income thresholds in the bill, the national median home sale in 2012 is $154,000 and most importantly the existing home sale capital gains exclusion on principle residences still stands.  Of course, if you have customers that you feel may fall into  this category, please work very closely with a CPA and/or tax attorney.

Whew…now that we have cleared that up let’s go out and get those listings and then give us call for the title and closing services!