Someone advised me that beginning in 2013, if you sell your home, you will be taxed 3% by the Feds.?

This requires a complex answer, and rather then go into details, see the link. But the bottom line is that few would ever see the tax.

The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home.

The law itself is couched in highly technical language that only a qualified tax expert can fully grasp.

If you net more than $250,000 per year (single) or $500,000 (married) and the net profit on the sale of your home exceeds $400,000 there will be a 3% tax on the profit in excess of $400,000.