Many questions and concerns have been presented to me recently by homeowners regarding a "real estate" tax included in the controversial health care bill passed by Congress in 2010. Let me start by saying that this tax, like most, is complicated. Therefore, I am not going to provide examples of how exactly the tax will be calculated, but here is some general information which may or may not belay your fears.
The tax does exist, although it is not specific to real estate, but targets "unearned income" of "high income earners". It is scheduled to take effect on January 1, 2013. The tax, however, does not apply to all real estate transactions.
Regarding one's primary residence, the capital gains exemption - of which many of you are aware - will shield a primary residence from this tax. Therefore, if the capital gain is less than $250,000 for a single person, or less than $500,000 for a married couple, the tax will not apply. Similarly, the tax does not apply to individuals with adjusted gross incomes of less than $200,000 or married couples with adjusted gross incomes of less than $250,000.
To put it another way, unless you make what the government has determined to be a lot of money and you are making what the government has determined to be a large profit on your primary residence, you need not be concerned with this tax. With that said, if you have any doubt as to whether the tax applies to you, you should consult an expert prior to making any decisions on a primary residence sale scheduled to close post-2012. (I am not a tax attorney or accountant. Do not rely on these comments as legal or tax expertise.)
As an aside, the tax may also apply to investment properties and rental income.
(Source: National Association of REALTORS, "The 3.8% Tax Real Estate Scenarios & Examples")
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