If you are like me I don't look forward to paying more taxes; especially on the sale of my real estate. And, if you are like me you are probably confused about when it goes into effect and all the other issues that surround the tax. So, here is a brief overview; it may not be as bad as we all think but it is another tax.
According to the Wisconsin Realtors Association the tax takes effect in 2013. There will be a new 3.8 percent tax imposed on investment income of "high-income earners" -- single households with adjusted gross incomes (AGI) over $200,000 and married households above $250,000. The tax will be levied on the smaller of the household's net investment income, or the excess of AGI over the thresholds.
Capital gains are treated as investment income. If your household's AGI exceeds the thresholds, you will be required to pay the 3.8 percent tax on the following types of real estate:
1. the gain from the sale of a primary residence, if the gain on the home exceeds $250,000 for single households or $500,000 for married households. (For primary residences, the tax applies only to the gain over these amounts.)
2. the gain from the sale of second homes.
3. the gain from the sale of investment and commercial real estate.
4. the net rental income from investment properties.
Note: For real estate other than primary residences, the tax applies to the entire gain.
If you want to read more please download more information by clicking on this link: www.wra.org/NewMedicareTax
Oh joy but better that you be prepared than be surprised.
The weather is just incredible and unfortunately it was a really sad day yesterday as Shari and I took the boat out of the lake. C'mon spring!
Life is a Gift...Live It!
Gary Nathan
Amanda Mavis
Woodland Dev. & Realty
15563 Railroad St.
Hayward, WI 54843
715-699-4040
nathan@garynathan.com
http://www.garynathan.com/
