Facts on a tax that may apply to some real estate transactions in 2013

Rumors are circulating on the Internet about a new 4% tax applied to all real estate sales beginning in 2013. While there is a Medicare tax going into effect in 2013 that could apply to some real estate sales, the criteria that must be met for the tax to be collected would be fairly narrow. According to the National Association of Realtors and factcheck.org.

First, the new tax would apply to the sale of a primary residence only if the seller's adjusted gross income is more than $200,000 for a single person and $250,000 for a married couple. Second, if the sellers meet the income criterion, the new tax would apply only to capital gains from the sale if they exceed $250,000 for individuals and $500,000 for a married couple. Finally, if both of those criteria are met, then the 3.8% tax would apply only to the profits above the $250,000/$500,000 limit.

Of course, for details concerning how the new law might apply to you, consult your tax professional.