miller place real estate

Confused about the 3.8% Real EstateTax?

Confused aboutthe 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