Health Care Sales Tax on the Sale of Your Home?

THE MYTH:
By now, each of us has received at least one email which says something to the effect of: "Under the new health care bill - did you know that all real estate transactions are subject to a 3.8% sales tax?" And, as so often happens, this has been taken as gospel by many just because it passed along the internet with assurances that it came from reliable sources. NOT...

THE TRUTH:
Q: Does the health care law impose a 3.8% tax on profits from selling your home?
A: No, with a few exceptions. The first $250,000 in profit from thh sale of a personal residence won't be taxed, or the first $500,000 in profit in the case of a married couple, and then only those with incomes over $200,000 per year ($250,000 per year for a married couple) will be subject to it.

This is separate from capital gains taxes, which have been in place for years. The 3.8% "health care tax" will, in fact, affect very few people.