Houston Area Real Estate & Relocation: 3.8% Tax on Real Estate Sales - Get the Facts

3.8% Tax on Real Estate Sales - Get the Facts

3.8% Tax on Real Estate Sales - Get the Facts


Rumor: There is a 3.8% federal tax on all home sales effective January 1, 2013.


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According to a recent post by the Texas Association of Realtors and also information put out by the National Association of Realtors . . . . .

Fact:  Effective January 1, 2013, a 3.8% tax will be placed on some home sales, but not all home sales.

Fact:  From the sale of a primary residence, an individual making over $200,000 a year, will have to pay a 3.8% tax on any profits over $250,000.  

Fact:  From the sale of a primary residence, a married couple making over $250,000 a year, will have to pay a 3.8% tax on any  profits over $500,000.


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Example:  An individual making over $200,000 a year and who sells their primary residence, making a profit of $260,000 or more, would have to pay $380.00.  ($260,000 - $250,000 = $10,000 x 3.8% = $380.00)

Example:  An individual making over $200,000 a year and who sells their primary residence, making a profit of $270,000 or more, would have to pay $760.00.  ($270,000 - $250,000 = $20,000 x 3.8% = $760.00)


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Example:  A couple making over $250,000 a year and who sell their primary residence, making a profit of $510,000 or more, would have to pay $380.00.  ($520,000 - $500,000 = $10,000 x 3.8% = $380.00)

Example:  A couple making over $250,000 a year and who sell their primary residence, making a profit of $520,000 or more, would have to pay $760.00.  ($520,000 - $500,000 = $20,000 x 3.8% = $760.00)


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3.8% Tax on Real Estate Sales - Get the Facts

Download and read the brochure published by NAR (National Association of Realtors).





    Information contained herein is believed to be accurate; however, it is not guaranteed and should be verified.  Statistics are believed to be accurate at the time published; however, they are subject to change and should not be relied upon without verification that they are current.


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Helping Buyers BUY and Sellers SELL for Over 20 Years

Northwest HOUSTON, TX and Surrounding Areas
Including Cypress, Kingwood, Magnolia, Spring, Tomball, The Woodlands

   Joyce Godwin, RE/MAX Realty Center
13611 Skinner Rd. #100, Cypress, TX
Cell:  (281) 381-0846
Email: joycegodwin@remax.net

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..Houston Relocation           ...     . . . . .Joyce Godwin, CRS, RE/MAX Realty Center. ...    .....     ... . .Joyce Godwin, CRS, Women'sCouncil of Realtors

Comment balloon 4 commentsJoyce Godwin • February 17 2012 09:20PM

Comments

This does not sound so bad now but literally in a few years it will be all transactions.

Posted by Elite Home Sales Team, A Tenacious and Skilled Real Estate Team (Elite Home Sales Team OC) almost 6 years ago

This law has made headlines for a long time and it's really only likely to impact a very small portion of the population.  I expect to see a few deals in my area (Silicon Valley) where this tax kicks in but not too many.

Posted by Bryan Robertson, Broker, Author, Speaker (Intero Real Estate) almost 6 years ago

Howdy and evening Joyce

Joyce my friend, this is such a mighty fine blog post on and brake down of the up coming 3.8% home sales tax.

Have a good one
Dale in New Hampshire

Posted by Dale Baker, New Hampshire Relocation Real Estate Information (Baker Energy Audits and Commercial Properties Inspections) almost 6 years ago

Joyce, thanks for sharing the facts!  I cannot see many sellers making that kind of a profit on their homes with the market being what it is right now.  Maybe down the road...  :)

Posted by Sonja Patterson, Texas Monthly 5-Star Realtor Recipient for the Hou (Executive Real Estate Services) over 5 years ago

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