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New tax does not apply to every house sold

July 6, 2012
The Alpena News

I enjoy reading Stephen Fletcher's column, but became concerned when I read the following in his July 3 column, "Last week's favorable ruling by the Supreme Court on Obamacare adds a new 3.8 percent tax on every house sold - part of a new national tax policy."

I did some research and found out that there is not a new 3.8 percent tax on EVERY house sold. According to snopes.com that is an urban legend. This tax would only apply to selling a home if you made a profit above the capital gains threshold of $250,000 for an individual or $500,000 for a couple. Additionally, you would need an income of over $200,000 for an individual or $250,000 for a couple for this tax to apply. So if you make $100,000 a year, bought your house in 2000 for $100,000 and sell it in 2013 for $200,000 (making an amazing $100,000 profit) you would still be below the threshold to pay this tax, and would not have to pay the 3.8% tax. This tax would NOT apply to 99% of the residents of Alpena, because let's face it; none of us are making half a million dollars profit on selling our houses.

I just wanted to make sure this urban legend doesn't spread any further.

Jennifer McNamara

Alpena

 
 

 

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