The 3.8% Tax Effective January 2013

 
 
 
  
Beginning January 1, 2013, a new 3.8 percent tax on some investment income will take effect.  Since this new tax will affect some real estate transactions, it is important to clearly understand the tax and how it could impact your transaction.  If’s a complicated tax, so it’s hard to predict how it will affect every buyer or seller.

To get you up to speed about this new tax legislation, the NATIONAL ASSOCIATION OF REALTORS® has developed this informational brochure.

On the following pages, you’ll read examples of diff erent scenarios in which this new tax — passed by Congress in 2010 with the intent of generating an estimated $210 billion to help fund President Barack Obama’s health care and Medicare overhaul plans — could be relevant to your transaction.

Understand that this tax WILL NOT be imposed on all real estate transactions, a common misconception. Rather, when the legislation becomes eff ective in 2013, it may impose a 3.8% tax on some (but not all) income from interest, dividends, rents (less expenses) and capital gains (less capital losses).  The tax will fall onlywillon individuals with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000 AGI. 

For more information, please click here.

 
As always, I recommend you speak to your accountant to see how this will affect your particular situation.

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Posted on February 24, 2012 at 11:59 pm
Cary Perkins | Category: 3.8 % Real Estate Tax, cary perkins, Current Portland Real Estate Market Information, Portland Real Estate Data, Portland Real Estate Statistics, Real Estate Tax | Tagged , , , , , , ,