Beginning Jan. 1, 2013, a new 3.8% tax on some investment income will take effect. Since this new tax will affect some real estate transactions, it is important for REALTORS® to clearly understand the tax and how it could impact your clients. It’s a complicated tax, so you won’t be able to predict how it will affect every buyer and seller.
It’s important to understand that this tax WILL NOT be imposed on all real estate transactions...which has been a persistent 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).
Source: Ohio Association of REALTORS®
Download The Facts versus Myths Brochure at http://www.ohiorealtors.org/public_policy/MythBusters.pdf