Some of you may have read something like this:
Did you know that all real estate transactions are subject to a 3.8% “Sales Tax?”
It requires a little explanation.
1. It does not apply to all real estate transactions.
2. It is a tax on investment income – income which may or may not derive from the sale of the property
3. It is only for individuals who earn more than $200,000 in income or married couples earning more than $250,000.
The income provision excludes about 97% of all Americans.
One would then have to earn a substantial capital gain on the home.
To calculate some possible scenarios for avoiding this tax, please contact me for more details.