Tag Archives: 3.8% home sales tax


Here is the real estate sales activity in The Ranch subdivision for March 2013.

THE RANCH:  Attached Dwelling Listings

Price Status Address Office
$220,000 A / B 2229 RANCH Dr CC123
$228,000 A / B 2285 RANCH Dr MBN61
$319,000 A / B 11276 RANCH Pl MBN41
$220,000 W 2229 RANCH Dr CC123
Total Number of Attached Dwelling   Listings: 4

THE RANCH: Residential-Detached Listings

Price Status Address Office
$325,000 A 11877   Wyandot Cir 0CRSS
$328,900 A 11804   VALLEJO St WURR1
$337,950 A 11240   QUIVAS Loop BC001
$499,900 A 11615   QUIVAS Way CBR56
$519,900 A 11388   QUIVAS Way KWR80
$550,000 A 1740   W 115TH Cir REX01
$559,500 A 11871   Bryant Cir FRON
$675,000 A 2593   Country Club Ct FRON
$995,000 A 2440   COUNTRY CLUB Loop PRMR1
$320,000 A   / B 11224   QUIVAS Loop MBN17
$334,000 A   / B 11261   QUIVAS Loop MBCDR
$339,900 A   / B 11482   Quivas Way MBD2X
$749,900 A   / B 2184   W 116TH Ave M1842
$334,000 P 11261   Quivas Loop 0CDRL
$495,000 P 2256   COUNTRY CLUB Loop CBR18
$283,900 S 2394   W 119TH Ave 00118
$365,000 S 11334   QUIVAS Way RMW01
$750,000 S 2333   COUNTRY CLUB Loop REM12
$337,950 W 11240   QUIVAS Loop BC001
Total   Number of Residential-Detached Listings: 19

Total Listings Reported (All Types): 23

SOURCE: IRES 03/01/2013 TO 03/31/2013, sales activity in The Ranch Subdivision.  The listings above may be listed or sold by other real estate brokers.

The impact of the 3.8% Medicare Tax on Your Home Sale

Two years ago, when the Healthcare Reform Act was enacted, it created a new tax that will go into effect in 2013. Many people believe that this tax targets real estate sales.  However, according to the National Association of Realtors (NAR), it does not, and it is estimated that the new tax will only effect 2-3% of people selling their homes.  NAR describes the tax as being more like a capital gains tax- due when you file your income tax return- not like a property transfer tax that you would pay at the closing table when you sell your home.

Whether the tax would even apply to a homeowner is based on several factors, including household income, federal tax filing status, and the amount of gain (not sales price) of the sale of your home.  The tax only applies to individuals whose income is over $200k per year, or $250k per year for people filing jointly. Furthermore, the gain on the house (not the sales price) would have to exceed $250k for individual filers, or $500k for people filing jointly.  Only the portion of the gain that exceeds those limits is subject to the new 3.8% tax. Considering the real estate market we seen for the past few years, I find it doubtful that most people would have that kind of equity in their homes.

There is a great article on one of NAR’s blogs that further elaborates on the new tax and whether this is all much ado about something that will not even effect 97-98% of sellers.  Here is the link for the full article: http://realtormag.realtor.org/news-and-commentary/feature/article/2012/10/38-tax-whats-true-whats-not.  The article also contains a 6-minute video from NAR that helps diffuse any unfounded rumors you may be hearing about the new tax.

Of course, none of this information should be construed as being tax advice.  Other criteria is used when the home is not your principal residence.  It is alway advisable that you consult your tax professional if you have questions about your specific circumstances when you sell your home.

Feel free to contact me, if you would like a copy of the NAR publication which summarizes information and examples of how this tax applies.