The following is my understanding of the “3.8% Medicare Tax,” which goes into effect in 2013, and the revenues from which will go into the Medicare Trust Fund:
Tax on real estate transactions depends on your income and whether or not you are single or married and filing jointly. The tax doesn’t apply to the first $250K of UNEARNED income (which may or may not be from the sale of property) for individual taxpayers and $500K for married couples filing jointly. Since, most taxpayers make less than $200K per year and most home sales don’t clear profits exceeding $200K, the vast majority of Americans will not be subject to the tax.
That’s what they said about the AMT....
Thank you for the clarification! I guess I can just focus on the unconstitionality of the entire bill.