Is there a 3.8% Affordable Care Act Tax on the sale of Real Estate?
The Affordable Care Act (ACA), often referred to as Obamacare, was signed into law by President Barack Obama on March 23, 2010 and went into effect in 2013.
The law is a Federal law that pertains to health care and health insurance, but is relevant to homeowners because it instituted a 3.8% tax on the net investment income of certain high earning taxpayers, including upon the net investment income on the sale of a home.
I’ll break down exactly who will pay the tax (and how much), but for now it’s easier to simply state that the tax is intended to raise general revenue to be used, among other things, to administer the Affordable Care Act.
Let’s start by saying right out of the gate that most people will not pay the 3.8% ACA tax upon the sale of their home. This is because there are a number of exclusions that exempt most homeowners.
The people most likely to pay the tax are Continue reading “The Impact of the 3.8% Affordable Care Act Tax on the Sale of Your Home”Read More