Assuming you are married, for the tax to apply, you would have to make over $250,000 and your gain on the sale of your primary residence would need to be greater than $500,000. You'd pay 3.8% on any amount greater than $500k.
My understanding is that there is not a $500,000 credit on the sale of homes that are not your primary residence.
In the sale of your primary residence, this will apply to virtually no one. This is essentially an extra tax on those who own second homes or rental properties.
I am trying to sell a second home now.
With the housing market the way it is, this is affect MANY people! I have several friends who have moved from heavily taxed-areas like Michigan and Oregon to Texas, but have been unable to sell their first home due to the market.
So now, they have a “second” home, simply because they can’t sell the dang thing. But, I think this is criminal - it is basically a tax strictly on property investors! Surely this too is unconstitutional!