The 3.8% applies to capital gains after the $500K capital gains threshold for selling a residence … I doubt that any Piggs find themselves in this enviable position … and if you do, congratulations, but you should be getting your financial advice from professionals 🙂
I’d be wary of anything that comes out of the OC Register’s editorial section. (And I used to work there.)[/quote]
DUDE, that snoops post was WAY less informative (wrong) than the original post. yah, in most of the country most people will not get hit with the tax. But here in CA, were most 2/2 condos built in the 1980’s go for more than the median house everywhere else, it is relevant, and true.
Plus this tax applys to other passive income, like rents, and not just capital gains.
Not saying it is a terrible thing to tax passive income similar wage income, but it most certainly is a true tax. I have no idea where they got the “mostly False”, except that they chose their example really really carefully to not include the exempetions. This is ‘mostly true’, but dont forget your 250k/500k exemptions.
