Buying Brevard

Brevard County, FL Real Estate and Local Information for Central and South Brevard County, FL specializing in the Melbourne, Suntree, and Viera areas.

Real Estate Sales Tax: A Fog of Misinformation

 

Foggy RoadReal Estate Sales Tax: A Fog of Misinformation

 

There was email written early last year about a real estate sales tax that continues to circulate on the internet, and the time has come to clear the fog of misinformation.  The email states that in 2013, under the healthcare bill, that all real estate transactions are subject to a 3.8% sales tax.  It contains an example of a home selling for $400,000 that will have a tax due of $15,200.

The bill is complex and you should seek the advice of a tax professional regarding your personal situation; however, the information below is an attempt to clarify some common misunderstandings.

The healthcare legislation provides for a 3.8% medicare tax on investment income for households above certain income levels, ($200,000 single person, $250,000 married couple filing jointly) starting in 2013 and whose net investment income exceeds certain thresholds.

This does not apply to all real estate transactions.  Even if your income level is high enough to subject you to this tax, the sale of your primary residence is excluded from capital gains up to $250,000 for individuals and $500,000 for married couples filing jointly.  The capital gains exclusion does not apply to vacation homes or rental properties. Therefore, a high income married couple selling their primary residence would only pay the tax on the amount of profit above the first $500,000 of profit.

If you have questions about buying or selling a home in Brevard County, Florida, contact Real Estate Agent, Laura Forman for more information.

Laura Forman - Realtor, CDPE, www.LauraSellsBrevard.com (321) 917-2162 

Melbourne Real Estate Agent on LinkedIn

Melbourne Real Estate Agent FaceBook Page

Find Laura Forman on Google+

Comment balloon 3 commentsLaura Forman • February 06 2011 11:06PM
Real Estate Sales Tax: A Fog of Misinformation
share
Real Estate Sales Tax: A Fog of Misinformation There was email written early last year about a real estate sales tax that continues to circulate on the internet, and the time has come to clear the fog of misinformation. The… more