Did you know that once the Health Care Law goes into effect in 2013, you will pay a federal tax of 3.8% on the sales price of your home? Pull out your calculator, but first take some aspirin (or maybe a glass of something much stronger), because on the sale of a $350,000 home, that’s a whopping tax of $13,300 on top of all your other closing costs and the already 1.78% state and local excise tax, which is a sales tax disguised as an “excise tax.” Sell a home for $750,000, and you will pay Uncle Sam $28,500 in sales tax. To all my liberal friends out there, I would ask how liberal are you feeling now?
Paul Guppy wrote this article, which was published in the Spokesman Review in Spokane, Washington on March 28, 2010. You can read the full text of Paul’s article at Health Care Tax on Real Estate Sales.
UPDATE: I received a comment from a money manager who is probably one of the best in the country, and he wrote this, “That sales tax effects only a very small % of sales . . . the tax is only on the capital gain of the homes capital gain above $500,000 . . . thus, if you paid $500,000 for the house and sold it for $700,000 . . . the tax is computed only on the $200,000 gain x 3.8%x= $7,600.” See Health Care Law on Sales of Real Estate.
So the Spokesman-Review “professional journalist” and the editorial staff of this great print newspaper is wrong and the bloggers are right? That’s a sweet turn on the traditional media, isn’t it? I say that because of all the criticism so-called professional journalists have been throwing at the rest of us “unprofessionals.”
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