How will the 3.8% investment tax affect your home sale?
With the passage if the Health Care bill there are some changes taking place now in 2013 that may affect you when you sell your home. Here are some highlights of the changes you need to know about.
- It is a 3.8% tax used to help fund Medicare
- Takes affect with the 2013 tax year
- Taxpayers with Adjusted Gross Incomes (AGI) of above $200,000, if filing as a single person, or $250,000, if filing as a married couple, are affected
- Capital gains exclusion on the sale of a primary residence of $250,000 for a single filer and $500,000 for a married couple still remains
- Certain qualified real estate professionals should not be subject to the 3.8 percent tax on their rental income if it can be treated as active income, rather than passive
As a Realtor, we are not qualified to give tax advice. We do however want you to know how this new tax might affect you when you sell your home. If you have specific questions about the new tax, please consult you tax professional. If you would like to see how the numbers add up, call us today for a free market analysis for your home.