It’s like having to pay for an extra real estate agent you never hired in the first place.
So if you have a capital gain of $260,000 on a home sale, you will have to pay a tax of about $10,000.
But what if you roll that capital gain into another house purchase?
I’m sure we all need to consult our CPA for more details.
Why wasn’t this little extra tax talked about in the debate on healthcare? Nancy was right when she said we have to pass the bill to see what’s in it.
And what about people selling a house to downsize, or to use a capital gain as retirement money as they downsize to a smaller home or condo? They will be hit with a big tax.
Would this have passed if we could have debated this before it passed? Would this provision have been changed or taken out or revised? We’ll never know, but this is a poster child for the idiocy of Congress. A major tax increase is in there, but nobody knew about it or talked about it until after the legislation has passed.
That’s hope and change for you.