What Do I Tell My Clients About The 3.8% Tax On Home Sales In 2013?

By
Real Estate Broker/Owner with Carousel Realty of Dyer County Tn 248435000

What do you tell your clients(about 3.8% tax) who plan to sell their homes next year? You tell them that they may or may not have to pay that tax.

Here is an excerpt from Money Magazine discussing the tax:

The new tax, which Congress passed in 2010, affects the net investment income of most joint filers with adjusted gross income of more than $250,000 ($200,000 for single filers). Starting on Jan. 1, 2013, the tax rates on long-term capital gains and dividends for these earners will jump from their current historic low of 15% to 18.8%, assuming Congress extends the current law.

Basically what the new law says is if you and your wife make $250,000 or more in capital gains and dividend income and sell their house then yes they very could have a 3.8% tax on the sale.

For the average homeowner this will not affect the sale of their home in 2013 and beyond.

After further research, I have found out that this 3.8% tax was stuck in the Obamacare law at the last minute. Personally I think this is just another example of class warfare that the democrats are waging in our country. I am hopeful that in January that the new president will with the help of the congress and the senate overturn this bill and replace it with real healthcare reform not loaded with junk like this.

Here is a link to the entire article in Money Magazine.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the leaf to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
Real Estate Best Practices
Groups:
Active Rain Block Party
Tea Party
The Lounge at Active Rain
RealtorsĀ®
Tags:
38 tax

Comments 8 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the lock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
778,598
Paula McDonald
CHEVAUX Group ~ The Woodlands, TX 936-203-0279
Chevaux Group, PLLC
Boy oh boy do we need to be in prayer about this election Mike. Really crucial.
August 22, 2012 08:15 AM
Ambassador
705,766
Mike Frazier
Dyersburg Tn Real Estate
Carousel Realty of Dyer County

Paula, I assure you that I have already been in prayer about this.

August 22, 2012 09:26 AM
Rainmaker
1,075,465
Wallace S. Gibson, CPM
LandlordWhisperer
Gibson Management Group, Ltd.

Unfortunately - many real estate agents do not KNOW about capital gains taxes OR the consequences of selling investment property.

August 22, 2012 01:53 PM
Rainmaker
353,982
Dale Terry

Mike, you are wrong on one thing.  The income amount will be reduced over time until all transactions are included.  This will happen because like all taxes, they start small and grow.

August 22, 2012 02:15 PM
Rainmaker
1,732,297
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.
WHISPERING PINES REALTY

Another reason to Repeal the the Obamacare program.  People will be saying...Well I didn't know.  Of course not, they didn't want you to know.

August 22, 2012 03:20 PM
Ambassador
1,088,783
Joni Staples
Your Huntsville / Lake Livingston Area REALTORĀ®
Berkshire Hathaway Home Services - Anderson Properties

Ditto what you said "I am hopeful that in January that the new president will with the help of the congress and the senate overturn this bill and replace it with real healthcare reform not loaded with junk like this."

August 23, 2012 06:14 AM
Rainmaker
523,138
Curtis Van Carter
Napa Valley's Broker Extraordinaire in Yountville
Coldwell Banker Brokers of the Valley, Yountville Napa Valley

Mike

I can't agree with you more about hopefully they will repeal Obama Care and come up with a better plan. cheers cvc

August 23, 2012 09:04 AM
Rainmaker
468,341
Kenneth Cole
NYS Licensed Real Estate Salesperson
Weichert Realtors Appleseed Group, 2043 Richmond Ave. S.I.N.Y. 10314. office phone 718-698-9797, Appleseedhomes.com -

Dale in comment #4 is right on.  Just look at the Federal Income Tax.  It was only to effect the top 1%.

August 24, 2012 04:26 AM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the flag to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Ambassador
705,766

Mike Frazier

Dyersburg Tn Real Estate
I am ready to answer and questions you may have
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the lamp to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information