Syracuse (WSYR-TV) - Starting next year, some people who sell their homes will have to pay a new Federal Medicare tax.
But to whom will this tax apply and when?
The tax is part of President Barack Obama’s health care bill. The 3.8 percent tax applies to any capital gain or profit from the sale of any kind of investment.
The tax could be applied to anything from the sale of a house to the sale of stock.
The profit earned must be more than $250,000 for people who file a tax return as single and over half a million for those who file jointly.
The tax is specifically applied to profit, and not the sale price. For example, if someone buys a home for $100,000 and sells it for twice that, the profit is only $100,000. Because that profit falls below the threshold, the tax does not apply.
The National Association of Realtors says the tax should not apply to anyone with an income that amounts to less than $200,000 per year. They estimate only 3 percent of households nationally will be affected.
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