New Tax Law Won’t Affect Most Homeowners in Northern Virginia

The new health care bill is a long and complicated document that is difficult to understand. One of the most misunderstood sections is the “tax on home sales” slated to take effect in 2013. This provision adds a 3.8% sales tax on the profit of home sales and other real estate transactions. But doesn’t that mean I’ll be paying thousands more to sell my home?! The answer: probably not.

This new tax is aimed at “high earners” and won’t affect most homeowners when they sell. Right now, capital gains up to $250,000 for singles and $500,000 for couples are tax free and that will continue to hold true. This new tax will be placed on any capital gains above those maximum thresholds that is not reinvested into a personal residence within 2 years of the sale.

For more details about how this new legislation might affect you we always advise talking to your tax professional or attorney. To read more about the facts and fiction of this new tax you can visit Snopes.com, a website aimed at debunking internet rumors.