Well, let’s set the record straight, yes there was a provision added to the PPACA (Patient Protection Affordable Care Act Sec 1411) but here are the facts:
- This new code will impose a 3.8% tax on the lesser of “net investment income” or the excess of modified adjusted gross income over 1)$250,000 for taxpayers filing jointly 2)$125,000 for married taxpayers filing separately 3)$200,000 for all other cases
- If you sell your home for a profit over the capital gains threshold of $250,000 for individuals and $500,000 for couples, you would be required to pay 3.8% on the amount over those thresholds
Seeing that the median sales price is under $200,000 and that only 1.5% of all households have income of $250,000 or above, this tax will only impact a small percentage of home sellers when implemented in 2013.
I hope this clarifies the issue a little. If you have further questions, consult your tax adviser.