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Rolla, ND | It's more complicated than that, it's not at all what people think of when they hear sales tax.
First, your income needs to be over $200,000 individual, $250,000 couple.
Secondly, it's investment income over allowable deductions.
So yes, it's capital gains, not gross.
And, figuring in on houses is the lifetime exclusion.
And the tax is the lesser of 3.8% of the amount their income exceeds the cap or the taxable capital gain whichever is less.
So first, if your home isn't going to appreciate over $500,000 you won't pay anything, and if it does, you pay on the amount it appreciates over the $500,000.
For farmers, a bigger potential issue would be the sale of land.
What it really amounts to is an increase in capital gains tax for people earning over the threshold income.
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question about the new health care law
