Q-1: Is there a 3.8% real estate “sales tax” or a transfer tax created in health care bill?
A: No. There is neither a real estate “sales tax” nor a real
estate transfer tax under any federal law. The Internet has generated
several viral items describing such a tax. Those Internet postings are
totally false. The 2010 health care legislation did create a new 3.8%
tax, but it applies only to a limited group of taxpayers.
Q-2: So who will be subject to the new tax? When is it effective?
A: The new 3.8% tax will apply to the “unearned” income of
“High Income” taxpayers. The new Medicare tax on unearned income will
take effect January 1, 2013. Proceeds from the tax will be allocated to
shoring up the Medicare fund.
Q-3: Who is a “High Income” Taxpayer?
A: Those whose tax filing status is “single” will be subject to
the new unearned income taxes if they have Adjusted Gross Income (AGI)
of more than $200,000. Married couples filing a joint return with AGI
of more than $250,000 will also be subject to the new tax. (The AGI
threshold for married filing separate returns is $125,000.)