We recently received from a couple of our clients an "alarming" email warning that the Obama Health Plan was imposing a "secret" 3.8% surcharge on the sale of homes. So we decided to do some research. Here is the answer received from Cashion Drolet, Sr. VP of Government Affairs for the South Carolina Association of REALTORS®:
"As part of the health care reform package that was passed in 2010, there are a number of tax increases included as pay-for provisions. One of those taxes is the 3.8% medicaid surtax on investment income beginning in 2013 (including capital gains, rents, dividends, etc.). Note that Capital Gains do come from investment sale or transfer of real estate. The Medicaid ...