We’ve been fighting this stupid rumor for 2 years that I’m aware of, that if anybody sells their home they will pay a 3.8% sales tax on the profits to Medicare, to fund “Obama’s health care act.”


I got this email this morning from 3 different people. 1 of those people was my Brother, inquiring if it’s true? The other 2 were just rabidly sheeping along, foaming at the mouth about how we have to vote to protect our homes and our equity.
Aaaaargh!
Here’s the body of this email:

> If you own a home, Please read this. THIS WILL BLOW YOU AWAY !!!!!
> The National Association of REALTORS is all over this and working to get it
> repealed, before it takes effect. But, I am very pleased we aren't the only
> ones who know about this ploy to steal billions from unsuspecting
> homeowners. How many REALTORS do you think will vote Democratic in 2012?
>
> Did you know that if you sell your house after 2012 you will pay a 3.8%
> sales tax on it? That's $3,800 on a $100,000 home, etc. When did this
> happen? It's in the health care bill and goes into effect in 2013.
>
> Why 2013? Could it be to come to light AFTER the 2012 elections? So, this is "change you can believe in"? Under the new health care bill all real estate transactions will be subject to a 3.8% Sales Tax.
>
> If you sell a $400,000 home, there will be a $15,200 tax.

> This bill is set to get the retiring generation who often downsize their homes. Does this make your November and 2012 vote more important?


> OH , you weren't aware this was in the Obamacare bill? Guess what, you aren't alone. There are more than a few members of Congress that aren't aware of it either.

*****************************************************************************
Can I give you some hard facts? The facts are that, yes, certain sales by high-income households will be affected by the new Medicare tax, possibly 1.5 percent of US households. (Not 1.5 percent of the US population - I said households.)
This tax applies only to people with an Adjusted Gross Income (AGI) of $200,000 for a single person or $250,000 for a couple.
The tax only kicks in after you take your capital gains exemption.

How about an example?
A couple with an AGI above the $250,000 limit sells their primary residence for $2 million. They make a $750,000 profit. Capital gains laws protect $500,000 of that $750,000, assuming that they have lived there for two out of the past five years. The 3.8-percent tax applies only to the $250,000 left over. Their tax liability under this new Medicare tax is $9,500. With all of the problems facing America right now, I’m not going to have a lot of heartburn over the fact that somebody in those income brackets profited $750,000 and had to give Medicare $9,500 of it.

My friend who sent this, please don’t be embarrassed that you were fooled. Somebody made this up and then published it, and then somebody else repeated it and it has spread like wildfire throughout certain circles.
To read the Health Care bill, go to http://www.huffingtonpost.com/2009/07/15/house-health-care-bill-fu_n_234372.html
To verify my research, go to http://www.factcheck.org/2010/04/a-38-percent-sales-tax-on-your-home/
Or, http://www.snopes.com/politics/taxes/realestate.asp


Or, http://www.realtor.org/small_business_health_coverage.nsf/docfiles/government_affairs_myth_busters.pdf/$FILE/government_affairs_myth_busters.pdf