There is alot of confusion associated with how the new 3.8% tax will be applied. Every circumstance will be different with the new 3.8% real estate tax . I recently particiapted in a Web Presentation explaining examples of how the tax will be calculated. I took photos of the slides from the presentation in order to share and only for informational purposes only--not as any financial advisor.
The 3.8% real estate tax is NOT a transfer tax and it will not be collected at settlement on a residence or investment when a Seller sells a property.
The tax is solely a real estate tax and it applies to any capital gain exceeding $250,000. The tax is to be paid when 2013 tax returns are filed in 2014.
The 3.8% tax is based on a formula. See the examples below for the amount of tax that would be due in each circumstance.
EXAMPLE #1 CAPITAL GAIN:SALE OF A PRINCIPAL RESIDENCE
EXAMPLE #2 CAPITAL GAIN:SALE OF A NON REAL ESTATE ASSET
EXAMPLE #3 CAPTIAL GAINS INTEREST AND DIVIDENDS:SECURITIES
EXAMPLE #4 RENTAL INCOME:INCOME SOURCES INCLUDING REAL ESTATE INVESTMENT INCOME
EXAMPLE #5 RENTAL INCOME: RENTAL INCOMES AS SOLE SOURCE OF EARNINGS
The 2013 tax will be addressed by Congress in the lame duck session.
For more information on the 3.8% real estate tax view www.realtor.org/politcal-advocacy