Obamacare real estate tax will only affect top 1%

There's a persistent rumor that homeowners are required to pay a 3.8 percent federal healthcare tax for home sales under the new Affordable Care Act. This is an unfounded rumor, little more than an urban legend,

The truth is that the Affordable Care Act does impose a 3.8 percent tax on some types of non-wage income and investment profits, starting in 2013. This only applies to individuals with an adjusted gross income of $200,000 or couples with a $250,000 AGI, however, not to all homeowners.

*Adjusted Gross Income is the net number you pay taxes on after deductions

Currently, only about 5 percent of people in the country would qualify for the income bracket needed for this tax. Moreover, even people with that qualifying income can exclude the first $250,000 from the sale from the tax couples are exempt for the first $500,000 in profits. This applies only to profits from the sale, not proceeds.

Here are some examples:

Lets say you are single and make $250,000 after taxes, or are married and make over $250,000 after deductions.

• Now you buy a $200,000 house.  You and your spouse could sell it for $699,000 without being taxed.  That is $0 towards this new tax.
• Here is a different example where you are married and make a $500,100 profit on a home sale, you would pay the 3.8 percent tax on only $100. That is $3.80 towards this new tax.
• Example three has you married and making a $900,000 profit.  You would be taxed for only $400,000 for a total of $15,200 towards this tax.

Clearly, this tax is not as widespread as the rumor would have you believe. According to the Tax Policy Center, an approximate 0.2 percent of all households with an annual income of $100,000 to $200,000 would pay any extra tax at all under this provision. The average tax for those individuals would be just $235, a figure that includes taxes on all non-wage income, not just real estate sales.

Despite these facts, the rumor continues to flourish, and misinformation about the act is rampant despite numerous attempts to set the record straight. In 2010, Politifact attempted to quell the story. Forbes tried again in 2012. Unfortunately, the rumor continues to spread despite so much clear evidence to the contrary, and many people continue to believe it and spread it instead of bothering to look up the facts.

If you happen to be a married couple with an AGI of $250,000 or more, and you're planning on making more than $500,000 in profits on your home sale, then you may need to pay this tax. For everyone else in the country, though, there's no need to worry about it. Time spent fretting about this rumor could be better spent planning lottery winnings or protecting yourself from lightning strikes as both are more likely to affect you than the Obamacare Real Estate Tax.