The Military Home Programs' Blog

Does the new health care law impose a 3.8% tax on the profit when selling your home?

Yes, but only under certain circumstances.

So the bad news is that there is one more law in place to tax us but here is the good news – this tax won’t apply to a great majority of Americans. In order to have this tax applied to your sale, you’d need to meet both of the follow criteria:

• You are a single taxpayer who earns more than $200,000 per year or a married couple earning over $250,000.
• You owe capital gains taxes on the sale of your home (the IRS allows exclusion on the gain of your primary residence for up to $250,000 if you file single or $500,000 for married filing jointly).

Tax code is constantly changing and there are some fine print rules with these exemptions, so check with your tax professional to see if you truly meet the full requirements to be tax exempt.