Update on Tax Reform and Taxable Consequences of Home / Property Sales - Bryce Gharring, Temecula, Certified Tax Preparer and Realtor®

Update on Tax Reform and Taxable Consequences of Home / Property Sales - Bryce Gharring, Temecula, Certified Tax Preparer and Realtor®

While in my last blog I talked about the probability of a major tax overhaul being on the agenda, further consideration makes me think we will stay stalemated on meaningful reform until after the elections. Although we now have established a bi-partisan approach to our debt problem, the reality remains that the democrats and republicans have very different views on how to lower the deficit.  

Consequently, even if the panel agrees to a tax hike, the house most likely would not pass it. This thought alone pretty much guarantees that stalemate will prevail and major tax reform will get delayed and both sides. Those who think the public is on their side will put their philosophies to the electorate in the 2012 elections, convinced that the majority of voters support their position. Hold tight folks, we're not through this by a long shot!

Rumors that are out there that may not be accurate: many publications, websites, and chat rooms have been working the troops up into a later with the so called proposed 3.8% tax on the profit on the sale of your property. While some of this can be construed as scare tactics, the reality remains that there is an element of truth to it. As they say, the devil is in the detail, and if this tax does go through there will definitely be some property sellers who will be hurt by it. So, let's deal with the facts as we know them.

There are two main points for consideration here concerning the taxable consequences of property sales: 

1. On primary residences (homes) there is already a $250,000 profit exclusion for single taxpayers, and a $500,000 for joint filers
2. Only those taxpayers who are single with an adjusted gross income in excess of $200,000, or $250,000 for those filing joint returns, would be impacted by this tax.  

Of concern, though, are those who sell a secondary residence (vacation home, etc.) or investment property and whose income exceeds the aforementioned AGI thresholds, the 3.8% medicare tax will definitely affect their bottom lines. Now that you better understand it, best to keep your eye on this one and see how it develops and plan your strategy accordingly. 

Stay tuned for more information on Tax Reform and Taxable Consequences of Home / Property Sales from Bryce Gharring, Temecula, Certified Tax Preparer and Realtor®

Brcyce Gharring has been a certified tax preparer for over 40 years, worked in the insurance industry for over 25 years as an agent, manager and executive, has been licensed and marketed securities for a major financial services firm for several years, and most recently combined that background to assist clients looking to buy or sell real estate as a Realtor® here in the Temecula Valley. Bryce assists home buyers and sellers in the entire Temecula Valley including Temecula, Murrieta, Menifee, Winchester, Wildomar and Lake Elsinore. He has earned the Certified Distressed Property Expert designation. He provides his clients with competence, compassion and understanding, as well as a dogged determination to help them meet thier financial and personal objectives.

Temecula California Realtor® | Temecula CA Tax Preparer | Temecula CA Homes