Today I want to address the possible 3.8% tax which will be put on home sales beginning in 2013. There seems to be a misconception regarding this law.
Fact Check.org explains it this way:
The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly will be subject to it. And even for those who have such high incomes, the tax still won't apply to the first $250,000 on profits from the sale of a personal residence or to the first $500,000in the case of a married couple selling their home.
A simple explanation comes from midiShaw:
The tax will affect those sellers of real property who will be otherwise taxed on capital gains under current tax laws. Under current law if you sell your primary residence and meet the 'time criteria, you are exempt up to $250,000 or $500,000 (filing individually or jointly). Any amount realized OVER that amount is taxable under tax schedules based on income. As such, this new tax will apparently be added to the current capital gains tax burden IF your income is over $200,000/$250,000 (filing individually or Jointly). for those selling second homes and investment properties, the tax once again, will be applied to the amount of gain realized.
As always please check with your CPA for further information regarding this tax.
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