Sales Tax on Escondido Real Estate

No 4% sales tax on Escondido Home Sales

Regardless of what you may have read or heard in newspapers or Internet articles, there is not a 4% transfer tax or sales tax on the sale of a San Diego North County homes included in the recently signed Obama Care health bill. 

The new health care bill does include other taxes, however.  One such tax is a 3.8% Medicare tax for some of the higher income households.  This tax will apply to “net investment income.”  The money from this tax will go to the Medicare hospital insurance program.  It applies to households with adjusted gross incomes in excess of $200k and to married couples making more (AGI) than $250k.   Capital gains are included as part of “net investment income” so sales of Escondido real estate held for investment purposes may have to pay an additional tax.   This new Medicare tax will not take effect until January 1, 2013.  

Before you make any tax decisions you should always contact your certified public accountant.  For great Escondido real estate information, contact Gary Harmon, your Escondido Realtor and real estate specialist.