2013 3.8 Percent Tax for Real Estate Income
Posted by Bianca Avila on Wednesday, July 17th, 2013 at 10:31am.
There has been a lot of discussion about the new 3.8 percent tax for some real estate income transactions that takes effect January 2013. Here is some clarification and different scenarios for the 3.8 percent tax for real estate income.
The 3.8 percent tax on real estate income transactions was passed by congress in 2010to generate income for President Barack Obama's health care and Medicare plans. To watch a video on the explanation of the 3.8 percent tax. from REALTOR.org.
For information about your personal plans to sell real estate, contact Bianca Avila at Surterre Properties. I will provide a custom market analysis based on your local market and discuss your specific needs with you.
This tax will not be imposed on all real estate transactions, only those that meet the following conditions:
- 3.8 percent tax on some income from interest, dividends, rents (less expenses) and capital gains (less capital losses) from real estate transactions that occur after January 1, 2013.
- The 3.8 percent tax will be imposed on individuals with an adjusted gross income (AGI) above $200,000. OR Couples filing a joint return with more than $250,000 AGI.
The new 3.8 percent tax applies to the LESSER of:
- Investment Income Amount
- Access of adjusted gross income over $200,000 or $250,000 amount