The Devils in the Details with ObamaCare

There seems to have been quite a bit of confusion recently over certain provisions of the Patient Protection and Affordable Care Act (“PPACA”) more commonly known as Obama Care which was passed by Congress and signed into law earlier this year. Although I am certainly not a proponent of this particular legislation, I do believe that it is important to accurately interpret and reflect its terms.  In some cases, it has been inaccurately reported that the legislation imposes a 3.8 % tax on all sales of real estate as a source of revenue with which to pay the massive cost associated with the legislation.  The legislation creates a new code Section 1411, which is a complicated provision of a very complicated piece of legislation.  The fact is, however, the legislation essentially says that if you sell your home for a profit above the capital gains threshold of $250,000 per individual or $500,000 per couple then you would be required to pay the additional 3.8 percent tax on any gain realized over this threshold.  Most people who sell their homes will not be impacted by these new regulations. This is not a new tax on every seller, and that correction needs to be made.  The tax is aimed at so-called “high earners” – imagine that. In any event, if you do not fall into that category you will not pay any extra taxes upon the sale of your home.