3.8 % Tax When You Sell Your After 2012

[Justin Spencer]

If you're married and your gross income is more than $250,000 you will be taxed 3.8% on any sale of property....you will be exempt from the first $500,000 of profit. Well we own our house and unfortunately for me and my wife we will fall into this income bracket that I'm sure all you libs will lable as rich and should be taxed to the hilt.

I'm not for higher taxes by any means, but I don't think I would call your situation unfortunate

[Tom Tricamo]

If you're married and your gross income is more than $250,000 you will be taxed 3.8% on any sale of property....you will be exempt from the first $500,000 of profit. Well we own our house and unfortunately for me and my wife we will fall into this income bracket that I'm sure all you libs will lable as rich and should be taxed to the hilt.

You might still need a new mortgage guy. Of course, you may also want to reconsider receiving tax advice from your mortgage guy. As a married couple, you and your wife will be taxed on any "net investment income" over certain capital gains thresholds IF you make over $250k per year. This would apply to more than your home but would be accounted for differently for investments held in certain S corps or LLCs. Back to your example on your personal residence.

First, you and your wife would need to have an AGI over $250k

Second, you would need to sell your home for more than $500k

Third, you would then pay THE LESSOR of two scenarios:

- The amount of taxable gain from the sale of the asset over the capital gains exclusion

- The amount by which you taxable income now exceeds the $250k threshold.

On $100k, in either example, that would $3800.00. In other words, not really a big deal. Furthermore, on just about every investment besides your personal residence, your accountant should be able to shelter your income long enough for a Republican to come in office.

More reading here (from National Association of Realtors): http://www.realtor.org/small_business_health_coverage.nsf/docfiles/government_affairs_invest_inc_tax_broch.pdf/$FILE/government_affairs_invest_inc_tax_broch.pdf

Note: I'm not an accountant but I am a licensed Realtor and Real Estate Investor. Good luck sheltering your income!

[ollie]

I have done taxes in the past for other people and if what you say is true then that is a new one to me as well.