What do you tell your clients(about 3.8% tax) who plan to sell their homes next year? You tell them that they may or may not have to pay that tax.

Here is an excerpt from Money Magazine discussing the tax:

The new tax, which Congress passed in 2010, affects the net investment income of most joint filers with adjusted gross income of more than $250,000 ($200,000 for single filers). Starting on Jan. 1, 2013, the tax rates on long-term capital gains and dividends for these earners will jump from their current historic low of 15% to 18.8%, assuming Congress extends the current law.

Basically what the new law says is if you and your wife make $250,000 or more in capital gains and dividend income and sell their house then yes they very could have a 3.8% tax on the sale.

For the average homeowner this will not affect the sale of their home in 2013 and beyond.

After further research, I have found out that this 3.8% tax was stuck in the Obamacare law at the last minute. Personally I think this is just another example of class warfare that the democrats are waging in our country. I am hopeful that in January that the new president will with the help of the congress and the senate overturn this bill and replace it with real healthcare reform not loaded with junk like this.

Here is a link to the entire article in Money Magazine.

 

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Posted by Mike Frazier, Dyersburg Tn Real Estate on 08/22/2012 08:11 AM   Comments (8)   Real Estate Tips in the ActiveRain Channel   38 tax  
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8 Comments on What Do I Tell My Clients About The 3.8% Tax On Home Sales In 2013?

AUG
22
761,333 Points 61 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
Boy oh boy do we need to be in prayer about this election Mike. Really crucial.
8:15am • #1
644,636 Points 8 Featured Posts Outside Blog Called Shot Master

Paula, I assure you that I have already been in prayer about this.
9:26am • #2
1,021,127 Points 65 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Unfortunately - many real estate agents do not KNOW about capital gains taxes OR the consequences of selling investment property.
1:53pm • #3
334,882 Points 1 Featured Post

Mike, you are wrong on one thing.  The income amount will be reduced over time until all transactions are included.  This will happen because like all taxes, they start small and grow.
2:15pm • #4
1,400,531 Points 54 Featured Posts Outside Blog Called Shot Master

Another reason to Repeal the the Obamacare program.  People will be saying...Well I didn't know.  Of course not, they didn't want you to know.
3:20pm • #5
AUG
23
874,471 Points 48 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Ditto what you said "I am hopeful that in January that the new president will with the help of the congress and the senate overturn this bill and replace it with real healthcare reform not loaded with junk like this."
6:14am • #6
353,871 Points 3 Featured Posts Outside Blog Called Shot Master

Mike

I can't agree with you more about hopefully they will repeal Obama Care and come up with a better plan. cheers cvc
9:04am • #7
AUG
24
422,147 Points 7 Featured Posts Called Shot Master

Dale in comment #4 is right on.  Just look at the Federal Income Tax.  It was only to effect the top 1%.
4:26am • #8


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Mike Frazier, Dyersburg Tn Real Estate

Dyersburg, TN

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Carousel Realty of Dyer County

Address: 1021 E. Tickle Street, Dyersburg, Tn, 38024

Office Phone: (731) 285-2277

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The purpose of this blog will be to discuss the market conditions in the Dyersburg Tennessee area of west Tennessee. There will lots of useful information for buyers, sellers, bankers and other users of Dyersburg real estate information. I will also often quote other professionals. Follow MikeFrazier-Dyersburg homes on Twitter


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