Confusion about new tax on real estate

Posted on: 6:11 pm, July 31, 2012, by , updated on: 06:16pm, July 31, 2012


OKLAHOMA CITY — There is a bogus email circulating right now, warning Oklahoma homeowners are about a “new sales tax on real estate.”

Click here to see the viral email.

Realtors and CPAs around the Oklahoma City metro have been inundated with calls and emails from concerned Oklahomans.

Realtor Anne Wilson has fielded dozens of phone calls and texts and emails from scared home sellers.

“This is not true. What is true is there’s a very small population that will be affected. By and large it is not going to affect the people who are closing on homes,” Wilson said.

Here are several of the false claims in the email:

  • “If you sell your house after 2012 you will pay a 3.8 percent tax on it.”
  • “Under the new health care bill, all real estate transactions will be subject to a 3.8 percent sales tax.
  • “If you sell a $400,000 home, there will be a $15,200 tax.”

CPA Joshua Jensen is an expert on the new tax code changes that are part of the Affordable Health Care Act.

“It really only applies to those that make over $250,000 adjusted gross income,” CPA Joshua Jenson said.

Here’s what’s true:

  • There is an additional 3.8 percent medicare tax that will go into effect in 2013 for households earning more than $250,000 a year.
  • Interest, dividends, capitol gains and the sale of real estate could potentially be subject to the 3.8 percent tax.
  • However, real estate profits are exempt from the 3.8 percent if the home is your primary residence, unless the profits are in excess of $500,000.

By and large, regardless of your politics on health care or tax law, everyone agrees here, middle-class Oklahomans are unaffected by the 3.8 percent.

Here’s what snopes.com has to say about the email.

Here’s the National Association of Realtors report on the 3.8% tax changes in 2013.

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