There is some confusion about the 3.8% sales tax on home sales that was inserted in the health care bill by the Obama Administration.

I will attempt to clear it up for you.

First, there is no sales tax unless you earn over $200,000/year.  So if you sell a home and earn less than $200k, you do not owe any sales tax.

Second, you are only taxed on the profit on the home, not the actual sales price. 

Third, the first $250,000 (singles) or $500,000 (married) of profit is exempt from the 3.8% home sales tax. 

 

So, only if you make over $200,000 a year and make more than $250,000 (single) or $500,000 (married) profit on your home will you be subject to the 3.8% home sales tax. 

Hope this helps!

Derek Gutting, The Gutting Group, Keller Williams Realty, www.GuttingGroup.com