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There is a lot of rumors going around about the real estate tax of 3.8%.  It has been rumored that it will be for all real estate transactions.  This is NOT true.   Below is the exact rules of the tax and what you need to know:

The income requirements are for so-called "high earners" are spelled out in the new law: $250,000 for married couples filed jointly, $125,000 for couples filing separately, and $200,000 for all others.  If you earn more than these benchmarks, you are a "high earner" and there for subject to the new 3.8% tax, but what you are taxed on helps further eliminate many people.

How is the tax calculated?

The incorrect assumption that the real estate sales tax (aka the Medicare tax) is calculated based on the sales price of the home makes a huge difference.  Instead, the tax is calculated based on profit.  As investment income, the profit is the sale price minus the initial investment.  Going back to the $400,000 home mentioned earlier, let's assume you paid $350,000 for it.  You profited $50,000.  Based on that, your tax would be $1,900 (3.8% x $50,000).  Much better than $15,200, right?

Okay, so you owe $1,900, which isn't that bad in the overall scheme of things.  But wait...do you owe $1,900?  The answer is a resounding no.  Why?  Because of the capital gains threshold that is included in the language.  You are only charged the 3.8% Medicare tax if your investment income passes the capital gains threshold.  How much is that?  The capital gains threshold is $250,000 for individuals and $500,000 for married couples filing jointly.

This means that profit over the $500,000 or $250,000 (depending on your marital status) would be taxed at the 3.8% rate (you would still need to be classified a "high earner").  In our $400,000 example above, where you walked away with $50,000 in profit, you would not be taxed.  The $50,000 is below the capital gains threshold.

For on this article check out : 3.8% tax

And Snopes.com’s article:3.8% tax

This tax will effect such a small % of people(less then 1.5%), but it is still important to know.  It will also be implemented in 2013.  I know this was a long post, but it was important to include all the information.  I hope you found it helpful.