First of all, I’m not a CPA and readers are advised to receive counsel from a competent CPA or accountant prior to making any decisions.
This tax will affect individuals with a adjusted gross income over $200,000 and joint return couples with and adjusted gross income over $250,000.
So how does it work?
The 3.8% tax will be forced when a person or couple selling are selling their home and capital gains tax is being applied. A little double dipping from your elected officials.
Oh yeah. The tax goes beyond your principal home to include the following:
- Sale of non-real estate assets. Meaning your stocks and bonds or as many call them… retirement. Sorry Lankowsky.
- Gain, interest, and dividends from security.
- Real Estate investment income.
- Some rental incomes.
- Sale of a second home with no rental history aka your vacation home.
- Sale of inherited investment property.
- Purchase and sale of investment property.
For a more thought out summary with financial examples from someone willing to take on the liability click here.