Don't believe rumors about home sales tax

Too many people believe the false story circulating on the Internet that claims there is going to be a sales tax on homes in 2013. This is not true. It is a surtax on investment income, which the Tax Foundation estimates will affect only about 2 percent of America's top-earning families.
According to, "The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won't apply to the first $250,000 on profits from the sale of a personal residence - or to the first $500,000 in the case of a married couple selling their home."
Even for the very rich, this surtax applies only to the excess profit, so if a couple bought their home for $400,000 and sold it for a million dollars, resulting in a capital gain of $600,000, only $100,000 of that would be subject to the 3.8 percent tax.
Jennifer Frey
West Seneca