Q: Does the new health care law impose a 3.8 percent tax on profits from selling your home?

A: No, with very few exceptions. The first $250,000 in profit from the sale of a personal residence won’t be taxed, or the first $500,000 in the case of a married couple. The tax falls on relatively few — those with high incomes from other sources.

FULL ANSWER

A lot of people have been asking this question since the health care bill recently became law. Lawmakers decided on a new 3.8 percent tax on the net investment income of high-income persons. The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home. So if the gain from the sale of the primary residence is below that amount, no tax will have to be paid on the gain.  Click here for frequently ask questions on this matter.