Dear Esther,
A friend mentioned to me last week about a 3.8% sales tax on homes which sell beginning in 2013. She said this was hidden in the health care bill. I can’t imagine our government adding this at a time when home sales are dragging down our economy. Can you confirm this?

Thanks,
Concerned
Dear Concerned,

Your friend is right about a 3.8% sales tax on homes sales in the health care bill beginning in 2013. According to factcheck.org and other sources, it is called a Medicare tax because the proceeds are allocated to shore up the Medicare Trust Fund. However, the fine print, which is couched in highly technical language, applies to a limited group of taxpayers. The tax is assessed on those with adjusted gross incomes of $200,000/year or more and only applies to profits over $250,000 from the sale of a personal residence ($250,000/year income and $500,000 profit for married couples).