A 3.8% Homes Sales Tax?

I mentioned in my Markwood North (Sienna) Insider newsletter that I would put the full post for the Sales Tax on homes that will be coming into play January 1, 2013, what I’m going to do is briefly explain and then give you links to FactCheck.org and the National Association of Realtor’s PDF file (you will need Adobe Acrobat to read).

In  a nutshell, our government decided to drop this tax in the new health care bill….possibly hoping that nobody would notice it amongst the thousands of pages.  It won’t affect most apparently, only the “rich people” that make over $200,000 that our government feels owes more money to the pot will be pinched.  I usually try to remain neutral in these matters when I post, but I personally feel this is only the beginning.

Here are the facts:

• Tax only applies for those making over $200,000/year ($250,000/year if married filing jointly)
• Does not apply to personal residences

Here is a quick quote from www.factcheck.org on how the tax will be imposed:

• A single executive making $210,000 a year who sells his $300,000 ski condo for a $50,000 profit. His tax on the sale of that vacation home would amount to $1,900, in addition to the capital gains tax he would have paid anyway.

If you would like to read the the entire article on this new tax at FactCheck you can find it at http://www.factcheck.org/2010/04/a-38-percent-sales-tax-on-your-home/

The National Association of Realtors also put together an 11 page article that you can open with Acrobat Reader, you can find that article HERE!

If you would like anymore information about this please let me know.