Confused about the 3.8% Real EstateTax?


Confused about the 3.8% Real estate Tax?

Effective January 1st 2013  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.  It is important to review the resources listed above for full details

Applies to: Individuals with adjusted gross income (AGI) above $200,000

Couples filing a joint return with more than $250,000 AGI

Types of Income: Interest, dividends, rents (less expenses), capital gains

(less capital losses)

Formula: The new tax applies to the LESSER of

Investment income amount

Excess of AGI over the $200,000 or $250,000 amount

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s