3.8% tax on 2012 house sale? not so, says NAR

Have you received one of the many e-mails floating into inboxes that worries you about a 3.8% tax, if you sell your home in 2012. Say it ain't so? It ain't so.

The National Association of Realtors (NAR) has this to say:

"Incorrect Rumors About 3.8% Transfer Tax Persist

"For the third time in the past six months, NAR is being inundated with questions about a real estate transfer tax enacted as part of the Health Care reforms in 2010. THERE IS NO SUCH TAX. A viral Internet posting is riddled with errors.

"The Health Care legislation did create a new tax that would apply to a portion of the gain on the sale of any capital asset (including real estate). That tax will apply ONLY to individuals with more than $200,000 Adjusted Gross Income (AGI) (or $250,000 AGI on a joint return). The tax does not apply to any amount excluded from taxation under the $250,000/$500,000 principal residence rules. The tax is never imposed directly on the full amount of any capital gain.

"The tax is computed under a multi-step formula that captures only a portion of any gain and will only affect those with total AGI above the amounts noted above."

If you have questions about this, contact your Realtor and ask for the NAR brochure with examples of the tax.