Posted on Friday, October 21, 2011
Beginning January 1, 2013, a new 3.8 percent tax on some investment income will take effect. A pamphlet is available from the National Association of REALTORS and passed on by Coldwell banker – let us know if you need a copy.
For all tax matters be sure to contact your tax professional to confirm these opinions from Coldwell Banker (CB) but here is the high level news from CB … “since this new tax will affect some real estate transactions, it is important for everyone to clearly understand the tax – it’s a complicated tax, so impacts on individual buyers and sellers will differ”.
“Understand that this tax WILL NOT be imposed on all real estate transactions, a common misconception. Rather, when the legislation becomes effective 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 only on individuals with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000 AGI.”
Let us know what you are hearing about the tax and if you need information let us know and we will send you the detailed pamphlet by email.
Have a great weekend everyone.