"SALES" Tax (2013, percent, state, California)

[Ted Bear]

I am hearing that part of the financicing for the new health care bill is a provision which mandates a 3.8% SALES Tax on the proceeds from selling your home. The logic seems to be that this tax will mostly affect older (apparently less healthy) Americans who are down sizing, and thus can kick in a portion of their wealth to pay for their care.

Is this Urban Legend, or is it really in there? Supposed to start in 2013.

[MikeJaquish]

More of less an Urban Legend, debunked many times.
FactCheck.org : A 3.8 Percent “Sales Tax” on Your Home?

[Ted Bear]

Thanks...so pretty much applies to everyone in New Jersey and California????

[jw2]

It is going to hit real estate investors. First of all, that gain will be factored in determining the income threshold. (note that the profit is enhanced because of depreciation taken). And second, there is no exclusion on non-primary homes.