Portland Condos – Yes, a tax. But not a sales tax. | LinkedIn

Portland Condos – Yes, a tax. But not a sales tax. | LinkedIn: Portland Condos – Yes, a tax. But not a sales tax. | LinkedIn:
The other day a client ask me who was thinking about selling her Portland home what I knew about the sales or transfer tax come January?  This has caused some confusion for our Portland condo and home owners.  This morning a great blog article came over to me from Linkedin that wanted to share with a detailed explanation of the 3.8% tax. To summarize that “yes it is a tax but not a sales tax” from Lnkedin.   The 3.8% tax bill is part of the Health Care Reform Act, which passed in 2010.  It was added into the health care law at the last minute and was never considered in hearings. The tax probably will be debated during the upcoming tax reform debates in 2013. Here are some of the key points:

• If your total income is less than $250,000 for a joint return or $200,000 for individual you will not be subject to this tax. The tax applies to all of your income including investment income from not only real estate but interest income, net rental income and or dividend income, etc.

• Following the guidelines of not paying taxes if you live in your primary home or Portland condo 2 out of 5 years do not pay taxes on that gain if the gain does not exceed the allowable amount.  This is also similar.  You will be taxed on the gain if it exceeds $250,000 – $500,000 depending if you file jointly or individually.

Remember I am a realtor who specializes in Portland condos and homes  and not an accountant so for details consult your tax advisor! Becky Scharf
Here is the article with a video from Linkedin.
“Yes, a tax. But not a sales tax. – Linkedin by Heather Elias   Last week, I wrote a post here about the 3.8% tax that is part of the Health Care Reform Act, which passed in 2010. There have been numerous emails circulating that mischaracterized how the tax worked, and here at NAR we wanted to help people understand it better. The post created a flurry of comments, and I thought we would address some of the points raised directly. (I’m taking some of my clarification points directly from The Top 10 Things You Need to Know about the 3.8% Tax.)
 Yes, it is a tax. But it’s not a sales tax, it’s a tax on investment income.
No, NAR does not support this tax. It was added into the health care law at the last minute and was never considered in hearings.The tax will no doubt be debated during the upcoming tax reform debates in 2013.
When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will NOT be subject to this tax.
For the tax to apply to any profit or gain on a primary home sale, the profit/gain must be more than the $250,000-$500,000 capital gains exclusion that’s in effect today. That’s gain, not sales price.
The tax applies to other types of investment income, not just real estate. If your income is more than the $200,000/$250,000 amount, then the tax formula will be applied to capital gains, interest income, dividend income and net rents (i.e., rents after expenses).
If you are concerned that this tax may apply to you, please consult your tax advisor.
NAR is nonpartisan and does not get involved in presidential politics.
Here is a video with NAR’s director of tax policy, Linda Goold, that does a very good job of explaining:


And here are some more resources that could help explain:
Top 10 Things You Need to Know about the 3.8% Tax
And here are some more resources that could help explain:

• Top 10 Things You Need to Know about the 3.8% Tax
• 3.8% Tax: What’s True, What’s Not
• The 3.8% Tax is Not A Real Estate Transfer Tax
• Washington Post: Health-care law’s 3.8 percent surtax will not affect many home sellers

  Yes, a tax. But not a sales tax. | LinkedIn. “