Affordable Care Act Tax on the Sell of Your Home

Well the Affordable Care Act, otherwise known as Obamacare is the law the law of the land. Whether your were in favor of it or opposed to it is history. Now the question is how will it effect the sell of your home?

If you have sold your home anytime after January 1, 2013 you may be subject to the 3.8% Net Investment Income Tax (NIIT).

The tax does not apply to most of us because the sell of your primary residence is not considered investment income unless the Net Profit from the sell of your home exceeds $250,000 ($500,000 in the case of a married couple). Anything over these amounts is considered investment income and is subject to the Net Investment Income Tax (NIIT) if the total of all your investment income and your Modified Adjusted Gross Income is over $250,000 for Married filing jointly or $200,000 for those filing Single.

So unless the value of your home has increased by $250,000 ($500,000 in the case of a married couple) you don't have anything to worry about. And even if you are fortunate enough to make that much profit, you only have to pay the tax on the amount the exceeds the $250k/$500k profit.

Visit one of my websites at http://selldaytona.com/ or http://www.venetianbay.org/

Location:Port Orange,United States