Are all the new 2013 taxes rubbing you the wrong way yet? Well here's another one you may not have heard of--it's the 3.8% Real Estate Medicare tax.
The 3.8% Real Estate Medicare tax was added to the health care reform act at the last minute and was not considered in committee hearings. Its purpose is to funnel funds into Social Security and Medicare.
Fortunately, most home sellers will never see this tax and it doesn't affect home values. So, who would be affected? A real estate transaction would only be affected if the gain on the sale is over $250,000 or $500,000 for joint tax filers. Any profits over $250,000 for individuals and over $500,000 for joint filers must be reported as capital gains.
Additionally, this tax does not apply to individuals who make under $250,000 in adjusted gross income or couples with under $500,000 adjusted gross income.
Don't panic if you're planning to sell a home in 2013, the percentage of sellers this affects is slim.
Source: National Association of Realtors