Merry Christmas!
Gary, Amanda and Barb
Monday, December 19, 2011
Saturday, December 17, 2011
Real Estate is Not Dead in Sawyer County
The November numbers are in from the Realtors Association of Northwest Wisconsin's Multiple Listing Service. Most of what we see in Sawyer County has been fairly positive of late with the exception of total homes sold for the year. So, while some of you may be bored by stats here is some reasonably good news. Remember that these are Sawyer County numbers according to the Multiple Listing Service (MLS) for our area and does not include properties sold that are not listed on the MLS.
The total number of homes sold in November was fourteen as compared to ten in 2010; that's a 40% increase over last year. All of northwest Wisconsin saw a 12.4% increase. Year to date Sawyer County has had 178 home sales as compared to 195 in 2010 which is a 8.7% decrease.
The average sale in November was $307,995 versus $233,250 in 2010 which is a 32% increase over last year. All of northwest Wisconsin has seen a 2.1% decrease in November.
The year-to-date median sales price in Sawyer County is $175,000 compared to $151,000 in 2010; that's a 15.9% increase as compared to a negative 4.7% for all of northwest Wisconsin.
While we have certainly had a challenging year in northwest Wisconsin and in our own County please know that the real estate market IS NOT DEAD.
Life is a Gift...Live IT!
Gary Nathan
Amanda Mavis
Woodland Dev. & Realty
15563 Railroad Street
Hayward, WI 54843
715-699-4040
nathan@garynathan.com
www.garynathan.com
The total number of homes sold in November was fourteen as compared to ten in 2010; that's a 40% increase over last year. All of northwest Wisconsin saw a 12.4% increase. Year to date Sawyer County has had 178 home sales as compared to 195 in 2010 which is a 8.7% decrease.
The average sale in November was $307,995 versus $233,250 in 2010 which is a 32% increase over last year. All of northwest Wisconsin has seen a 2.1% decrease in November.
The year-to-date median sales price in Sawyer County is $175,000 compared to $151,000 in 2010; that's a 15.9% increase as compared to a negative 4.7% for all of northwest Wisconsin.
While we have certainly had a challenging year in northwest Wisconsin and in our own County please know that the real estate market IS NOT DEAD.
Life is a Gift...Live IT!
Gary Nathan
Amanda Mavis
Woodland Dev. & Realty
15563 Railroad Street
Hayward, WI 54843
715-699-4040
nathan@garynathan.com
www.garynathan.com
Friday, November 18, 2011
Sales in Sawyer County
We are hearing in the media that sales in some areas of our country have picked up and inventories have actually started a slight trend downward. For the most part median sale prices have leveled out as well.
In Sawyer County it is interesting to note that there were 270 sales from January 1, 2010 to October 31, 2010; this includes all residential on and off-water homes as well as vacant land. During the same period in 2011 there have been 233 sales.
Of those sales there were 146 residential homes sold in 2010 and 136 sold in 2011 during that same 10 month period. If we drill down further there were 77 residential waterfront sales in 2010 and nearly the same at 76 sales in 2011. The off-water residential sales were relatively close as well with 69 sales in 2010 and 60 sales in 2011.
This information is based on closings posted on the Multiple Listing Service and accounts for sales only in Sawyer County.
What is not accounted for in the above information are some auction, foreclosure and short sales along with sales that occur between parties for properties not listed on the Multiple Listing Service.
From my perspective this year has certainly been busier than last and we hope that this trend will continue. It is still a good time to be a buyer; there are high inventories, reduced prices and great finance rates. The flip side is that as a buyer you need to be well-qualified and have a reasonable amount of money for a down payment as lender underwriting has really tightened up.
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
www.garynathan.com
In Sawyer County it is interesting to note that there were 270 sales from January 1, 2010 to October 31, 2010; this includes all residential on and off-water homes as well as vacant land. During the same period in 2011 there have been 233 sales.
Of those sales there were 146 residential homes sold in 2010 and 136 sold in 2011 during that same 10 month period. If we drill down further there were 77 residential waterfront sales in 2010 and nearly the same at 76 sales in 2011. The off-water residential sales were relatively close as well with 69 sales in 2010 and 60 sales in 2011.
This information is based on closings posted on the Multiple Listing Service and accounts for sales only in Sawyer County.
What is not accounted for in the above information are some auction, foreclosure and short sales along with sales that occur between parties for properties not listed on the Multiple Listing Service.
From my perspective this year has certainly been busier than last and we hope that this trend will continue. It is still a good time to be a buyer; there are high inventories, reduced prices and great finance rates. The flip side is that as a buyer you need to be well-qualified and have a reasonable amount of money for a down payment as lender underwriting has really tightened up.
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
www.garynathan.com
Monday, October 10, 2011
Flood Insurance
We received this latest blurb from the Realtors Association regarding flood insurance. Earlier this week, Congress passed the Continuing Resolution to keep the government funded until November 18, 2011. The funding for the National Flood Insurance Program (NFIP) was included in that resolution, which means it will remain operational through November 18.
The Senate still needs to pass the 5-year NFIP reform bill and resolve any differences with the House in the next six weeks to avoid a program lapse.
Flooding recently has been the most extensive natural disaster all over the United States. For more information and resources about the NFIP, visit: http://www.realtor.org/topics/nfip
Have a great weekend and remember...Life Is A Gift...Live It!
Gary Nathan
Amanda Mavis
Woodland Dev & Realty
15563 Railroad St
Hayward, WI
715-699-4040
nathan@garynathan.com
http://www.garynathan.com/
The Senate still needs to pass the 5-year NFIP reform bill and resolve any differences with the House in the next six weeks to avoid a program lapse.
Flooding recently has been the most extensive natural disaster all over the United States. For more information and resources about the NFIP, visit: http://www.realtor.org/topics/nfip
Have a great weekend and remember...Life Is A Gift...Live It!
Gary Nathan
Amanda Mavis
Woodland Dev & Realty
15563 Railroad St
Hayward, WI
715-699-4040
nathan@garynathan.com
http://www.garynathan.com/
Electronics & Clothing Recycle
The Realtors Association of Northwestern Wisconsin are hosting an electronics recycle day on Saturday, October 29th from 9:00 am to 1:00 pm. The collection site is at the Northland Mini Storage property located at 10128 State Hwy 27, Hayward - just south of the Flat Creek Inn & Suites. In addition to electronics recycling we will also be collecting fall and winter clothing for the Salvation Army.
Our Realtors Assn of Northwestern Wisconsin has been involved in many community events including food drives for the Salvation Army, support for our Troops, Special Olympics, Toys for Tots, Area Food Banks and much more. We have awarded over $115,000 to people in need in northwestern Wisconsin. The grants have provided roof repairs, handicap ramps, plumbing and bathroom repairs.
"We make a living from what we get, but we make a life by what we give" - Sir Winston Churchill.
Life Is A Gift...Live It!
Our Realtors Assn of Northwestern Wisconsin has been involved in many community events including food drives for the Salvation Army, support for our Troops, Special Olympics, Toys for Tots, Area Food Banks and much more. We have awarded over $115,000 to people in need in northwestern Wisconsin. The grants have provided roof repairs, handicap ramps, plumbing and bathroom repairs.
"We make a living from what we get, but we make a life by what we give" - Sir Winston Churchill.
Life Is A Gift...Live It!
Gary Nathan
Amanda Mavis
Woodland Dev & Realty
15563 Railroad St
Hayward, WI
715-699-4040
Wednesday, October 05, 2011
The New Medicare Tax on Real Estate
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/
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/
Thursday, June 23, 2011
Veterans
Greetings,
I am forever grateful to those who have and are serving our country in the military. My father, Otto, and my father-in-law, Al, both served our country and I give thanks that they responded to the call. We can never repay those who have and are serving.
So I wish to share with you the Veterans Administration Home Loan information in the event you have a military family member that needs help with financing. Matt Polsky of the VA Mortgage Center was kind enough to provide some highlights.
VA Home Loans for Wisconsin Service Members
Congress created the VA Home Loan Guaranty program in 1945 to help veterans buy a home upon returning from World War II. Today, service members and veterans still use the program to purchase their dream houses. More than 19 million men and women have used a VA loan to have a place to call home. Wisconsin has seen its fair share of home buyers using VA loans because of their financial benefits.
By making Wisconsin VA loans accessible, service members and veterans can more easily purchase a home. The VA increases accessibility by having flexible qualifying standards. For instance, the VA has no credit score requirement, only VA-certified lenders do. According to VA Mortgage Center, they do not expect perfect credit, due to frequent moves and deployments, and instead look for scores near the 620 mark.
Furthermore some military home buyers have attained a VA loan in Wisconsin with a bankruptcy or foreclosure in their past. These scars in financial history do not immediately disqualify VA loan applicants. Neither does a high debt-to-income (DTI) ratio. Lenders allow DTI ratios as high as 41 percent; however, lower DTI ratios and higher credit scores usually mean better interest rates.
The VA also designed the program to make sure almost all veterans and service members are eligible for the program. As long as a veteran earned a discharge that was not dishonorable, he or she is most likely eligible. Serving on active duty for 90 days during wartime or 181 days during peacetime, may make a service member eligible. National Guard members and Reservists who served for at least six years may be eligible, as may spouses of fallen service members.
Plenty of benefits make Wisconsin VA loans worthwhile. For one thing, unlike any conventional loan, VA loans come with no down payment to qualified home buyers. In Wisconsin, that means military home buyers could fully finance a home worth as much as $417,000. Other perks save money in the short- and long-run:
-Lower closing and concession costs
-Home buyers are not penalized for prepayment
-Private mortgage insurance (PMI) does not exist in VA loans
-Interest rates are negotiable, and for active-duty home buyers they’re capped
-Home buyers approaching default get counseling and new financing options
-Refinancing options allow home buyers to cash out or lower interest rates ]
All it takes to get started toward earning a Wisconsin VA loan is filling out a Certificate of Eligibility (COE). These simple forms are available from the VA or through a VA-certified lender. More information about VA loans in Wisconsin is available from such lenders.
Thank you Veterans and those currently serving. Have a great weekend and remember:
Life is a Gift...Live It!
Gary Nathan
Amanda Mavis
Woodland Dev. & Realty
715-699-4040
nathan@garynathan.com
www.garynathan.com
I am forever grateful to those who have and are serving our country in the military. My father, Otto, and my father-in-law, Al, both served our country and I give thanks that they responded to the call. We can never repay those who have and are serving.
So I wish to share with you the Veterans Administration Home Loan information in the event you have a military family member that needs help with financing. Matt Polsky of the VA Mortgage Center was kind enough to provide some highlights.
VA Home Loans for Wisconsin Service Members
Congress created the VA Home Loan Guaranty program in 1945 to help veterans buy a home upon returning from World War II. Today, service members and veterans still use the program to purchase their dream houses. More than 19 million men and women have used a VA loan to have a place to call home. Wisconsin has seen its fair share of home buyers using VA loans because of their financial benefits.
By making Wisconsin VA loans accessible, service members and veterans can more easily purchase a home. The VA increases accessibility by having flexible qualifying standards. For instance, the VA has no credit score requirement, only VA-certified lenders do. According to VA Mortgage Center, they do not expect perfect credit, due to frequent moves and deployments, and instead look for scores near the 620 mark.
Furthermore some military home buyers have attained a VA loan in Wisconsin with a bankruptcy or foreclosure in their past. These scars in financial history do not immediately disqualify VA loan applicants. Neither does a high debt-to-income (DTI) ratio. Lenders allow DTI ratios as high as 41 percent; however, lower DTI ratios and higher credit scores usually mean better interest rates.
The VA also designed the program to make sure almost all veterans and service members are eligible for the program. As long as a veteran earned a discharge that was not dishonorable, he or she is most likely eligible. Serving on active duty for 90 days during wartime or 181 days during peacetime, may make a service member eligible. National Guard members and Reservists who served for at least six years may be eligible, as may spouses of fallen service members.
Plenty of benefits make Wisconsin VA loans worthwhile. For one thing, unlike any conventional loan, VA loans come with no down payment to qualified home buyers. In Wisconsin, that means military home buyers could fully finance a home worth as much as $417,000. Other perks save money in the short- and long-run:
-Lower closing and concession costs
-Home buyers are not penalized for prepayment
-Private mortgage insurance (PMI) does not exist in VA loans
-Interest rates are negotiable, and for active-duty home buyers they’re capped
-Home buyers approaching default get counseling and new financing options
-Refinancing options allow home buyers to cash out or lower interest rates ]
All it takes to get started toward earning a Wisconsin VA loan is filling out a Certificate of Eligibility (COE). These simple forms are available from the VA or through a VA-certified lender. More information about VA loans in Wisconsin is available from such lenders.
Thank you Veterans and those currently serving. Have a great weekend and remember:
Life is a Gift...Live It!
Gary Nathan
Amanda Mavis
Woodland Dev. & Realty
715-699-4040
nathan@garynathan.com
www.garynathan.com
Friday, March 18, 2011
Dock Registration
Wow what a week of great weather; spring appears to be right around the corner.
If you are a waterfront property owner with a larger pier (dock) you must register your pier with the Department of Natural Resources by April 1, 2011 to ensure that your dock will be "grandfathered" from the new size limits adopted by the State of Wisconsin in 2004.
Generally speaking a dock will need to be registered if it (1) is wider than 6 ft, but less than 8 ft in width, (2) has a platform at the end of the pier that has a surface area of less than 300 ft (w/ a max. width of 10 feet) and/or (3) more than 2 boat slips for the first 50 feet of shoreline frontage and one boat slip for each additional 50 feet of shoreline frontage.
To register a pier/dock, you must complete and mail a registration form to the DNR. To obtain a copy of the registration form and to find out more information about which piers need to be registered, you can visit the DNR's website at:Waterway & Wetland Permits: Piers, Docks and Wharves.
Have a wonderful weekend and do some ice fishing because ice is going out early this year.
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/
If you are a waterfront property owner with a larger pier (dock) you must register your pier with the Department of Natural Resources by April 1, 2011 to ensure that your dock will be "grandfathered" from the new size limits adopted by the State of Wisconsin in 2004.
Generally speaking a dock will need to be registered if it (1) is wider than 6 ft, but less than 8 ft in width, (2) has a platform at the end of the pier that has a surface area of less than 300 ft (w/ a max. width of 10 feet) and/or (3) more than 2 boat slips for the first 50 feet of shoreline frontage and one boat slip for each additional 50 feet of shoreline frontage.
To register a pier/dock, you must complete and mail a registration form to the DNR. To obtain a copy of the registration form and to find out more information about which piers need to be registered, you can visit the DNR's website at:Waterway & Wetland Permits: Piers, Docks and Wharves.
Have a wonderful weekend and do some ice fishing because ice is going out early this year.
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/
Monday, January 24, 2011
Housing Stats for 2010 - Sawyer County Real Estate
Housing Stats for Sawyer County in 2010
Numbers can be interesting and deceiving; Chris McGrath, broker associate in our office, has this to offer.
The Realtors Association of Northwest Wisconsin (RANWW) MLS statistics for 2009 vs 2010 indicates a value improvement for Sawyer County in 2010. The median sale price went up as well, just at a different rate depending on how you calculate the increase. (i.e. the median of the 12 months or the average of the 12 months).
These statistics differ from the ones we just received from the Wisconsin Realtor Association (WRA). The WRA totals indicate that the number of units sold remained virtually unchanged from 2009(278) to 2010(276). WRA also indicates a slight reduction (down 3.2%) in the median price from 2009 to 2010 ($155,500 to $150,500).
Why the different numbers?
According to the RANWW the WRA numbers include other data sources such as auctions, non-MLS transactions and foreclosures. Compared to the RANWW which includes Multiple Listing Service (MLS) data only. The WRA numbers include non-MLS data and MLS data.
One could argue that the overall market value is determined by all transactions, not just those from MLS.
Of course, one could also argue that the RANWW numbers are more representative of the actual market because the other sales were either distressed (as most auctions are) or sales that were the result of private and/or other non Multiple Listing Service transactions, thus not representative of our overall market.
Life is a Gift...Live it!
Gary Nathan & Amanda Mavis
Featured Listing
$189,000
MLS#836681
Numbers can be interesting and deceiving; Chris McGrath, broker associate in our office, has this to offer.
The Realtors Association of Northwest Wisconsin (RANWW) MLS statistics for 2009 vs 2010 indicates a value improvement for Sawyer County in 2010. The median sale price went up as well, just at a different rate depending on how you calculate the increase. (i.e. the median of the 12 months or the average of the 12 months).
These statistics differ from the ones we just received from the Wisconsin Realtor Association (WRA). The WRA totals indicate that the number of units sold remained virtually unchanged from 2009(278) to 2010(276). WRA also indicates a slight reduction (down 3.2%) in the median price from 2009 to 2010 ($155,500 to $150,500).
Why the different numbers?
According to the RANWW the WRA numbers include other data sources such as auctions, non-MLS transactions and foreclosures. Compared to the RANWW which includes Multiple Listing Service (MLS) data only. The WRA numbers include non-MLS data and MLS data.
One could argue that the overall market value is determined by all transactions, not just those from MLS.
Of course, one could also argue that the RANWW numbers are more representative of the actual market because the other sales were either distressed (as most auctions are) or sales that were the result of private and/or other non Multiple Listing Service transactions, thus not representative of our overall market.
Life is a Gift...Live it!
Gary Nathan & Amanda Mavis
Featured Listing
$189,000 MLS#836681
Thursday, January 13, 2011
New Law Requires Carbon Monoxide Detectors
If you are at all like me I don't like lots of new laws but the carbon monoxide one makes sense and will save lives.
Many years ago when we lived in town on Pinecrest Drive my youngest daughter, Nicole, had just learned all about carbon monoxide in one of her classes at school. She was all excited and insisted that we immediately install a detector for our safety. Needless to say I was not exactly in a rush to get to the store but she was insistent. As I recall we made the trip to the local hardware store the next day. Long story short - we installed a carbon monoxide detector and it probably saved our lives. Shortly thereafter the alarm sounded and sure enough we discovered our furnace was spewing carbon monoxide.
Dubbed the "silent killer" carbon monoxide is a dangerous, poisonous gas that you cannot detect and it kills more than 2000 U.S. citizens each year and sends tens of thousands to the emergency room.
On February 1, 2011, Wisconsin's new carbon monoxide detector law will go into effect. Essentially all homes must have a carbon monoxide detector. It requires all one and two-family homes to have installed carbon monoxide alarms in the basement of the dwelling and on each floor level except the attic or storage area of both newly constructed and existing homes. So, for existing homes you can have battery operated monitors rather than going to the expense of a hard-wired system. If you are building a new home the alarms must be hard-wired in order to be current with national model safety codes.
Homes with no attached garages, no fireplaces and no fuel-burning fireplaces are exempted from this requirement. The new carbon monoxide detector law does not have a fine or penalty associated with non-compliance.
Take it from me and my family, we are here today as a result of having spent less than 50 bucks for a monitor that we simply plugged into our lower level wall outlet. It's the law but even if it wasn't I would still be recommending that you protect yourself and your family.
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/
Many years ago when we lived in town on Pinecrest Drive my youngest daughter, Nicole, had just learned all about carbon monoxide in one of her classes at school. She was all excited and insisted that we immediately install a detector for our safety. Needless to say I was not exactly in a rush to get to the store but she was insistent. As I recall we made the trip to the local hardware store the next day. Long story short - we installed a carbon monoxide detector and it probably saved our lives. Shortly thereafter the alarm sounded and sure enough we discovered our furnace was spewing carbon monoxide.
Dubbed the "silent killer" carbon monoxide is a dangerous, poisonous gas that you cannot detect and it kills more than 2000 U.S. citizens each year and sends tens of thousands to the emergency room.
On February 1, 2011, Wisconsin's new carbon monoxide detector law will go into effect. Essentially all homes must have a carbon monoxide detector. It requires all one and two-family homes to have installed carbon monoxide alarms in the basement of the dwelling and on each floor level except the attic or storage area of both newly constructed and existing homes. So, for existing homes you can have battery operated monitors rather than going to the expense of a hard-wired system. If you are building a new home the alarms must be hard-wired in order to be current with national model safety codes.
Homes with no attached garages, no fireplaces and no fuel-burning fireplaces are exempted from this requirement. The new carbon monoxide detector law does not have a fine or penalty associated with non-compliance.
Take it from me and my family, we are here today as a result of having spent less than 50 bucks for a monitor that we simply plugged into our lower level wall outlet. It's the law but even if it wasn't I would still be recommending that you protect yourself and your family.
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/
Monday, January 10, 2011
3.8% Real Estate Tax? - Get The True Scoop
Greetings,
Maybe you've been hearing rumblings recently about a 3.8% sales tax on all real estate transactions. Below is a good article from our local Wisconsin REALTORS Association Best of Legal Hotline. There are also some links that you can go to and read more about it. I have taken the liberty to reprint this in its exact form therefore you have to put up with all the disclosures and disclaimers.
This Legal Hottips article may be reprinted only if it is reprinted in its entirety, including the disclaimers above and below the Hotline questions and answers. The Wisconsin REALTORS® Association Best of the Legal Hotline Service is an educational resource intended to keep the Association abreast of legal developments and concerns involving real estate practice in Wisconsin. We look forward to your input regarding the service, especially regarding the types of topics you would like covered.
1.) General Real Estate - Miscellaneous Issues
QUESTION:
The broker has heard about an added 3.8% tax that sellers must pay upon the sale of their property. Is there such a tax and is it really 3.8%?
ANSWER:
There have been e-mail and rumors circulating that proclaim that all real estate transactions will be subject to a 3.8% sales tax starting in 2013 under the new health care legislation – that statement is clearly untrue. On the other hand, there is a 3.8% Medicare surtax that will apply to the investment income of single taxpayers with adjusted gross incomes (AGI) over $200,000 and to married taxpayers with adjusted gross incomes over $250,000 starting in 2013. The tax applies to the smaller of the household's net investment income or the excess of AGI over the thresholds. Capital gains are treated as investment income for these purposes. In terms of real estate transactions, if these taxpayers sell their homes after 2012 and the gain exceeds $250,000 for a single taxpayer or $500,000 for married taxpayers, the amount of the gain over these amounts will be subject to the 3.8% tax. The tax also would apply to the gain from the sale of a second home, investment and commercial real state and net rental income from investment properties.
READ MORE ABOUT IT:
To learn more about how the 3.8% surtax will be applied and other details of the health care legislation, review the following online NAR resources:
• Frequently Asked Questions about Health Care Reform: http://www.realtor.org/small_business_health_coverage.nsf/docfiles/government_affairs_health_ref_faqs.pdf/$FILE/government_affairs_health_ref_faqs.pdf
• Myth Busters flyer: http://www.realtor.org/small_business_health_coverage.nsf/docfiles/government_affairs_myth_busters.pdf/$FILE/government_affairs_myth_busters.pdf
• Health Insurance Reform: NAR FAQs: http://www.realtor.org/small_business_health_coverage.nsf/Pages/health_ref_faq_med_tax_earned_income?OpenDocument
This Wisconsin REALTORS® Association Best of the Legal Hotline service is provided for you by the WRA's Legal Affairs Department. The service should be considered a general statement of applicable legal principles. Given this format, it is impossible to fully address all potential legal issues which might apply in any particular situation. A determination of any individual's legal rights in a transaction can only be obtained after complete analysis of the law and its applicability to the particular fact situation. Please contact the WRA Legal Hotline if additional information is needed, or private counsel, if legal advice is needed. Thank you for using the Wisconsin REALTORS® Association Designated REALTOR® Best of the Legal Hotline service.
This HOTLINE response should be considered a statement of applicable legal principles. Given the HOTLINE format, it is impossible to fully analyze all the relevant facts in any particular situation. A determination of one’s legal rights can only be obtained after complete analysis of the law and its applicability to one’s particular fact situation. Therefore, this response does not constitute legal advice and should not be relied upon as legal advice in litigation, arbitration or ethics matters. Private counsel should be consulted if legal advice is needed or if the caller is involved in litigation, arbitration or ethics matters.
Life is a Gift. . .Live it!
Gary Nathan and Amanda Mavis
Woodland Dev & Realty
15563 Railroad St
Hayward, WI 54843
715-699-4040
nathan@garynathan.com
www.garynathan.com
http://www.realestatehaywardwi.com/
Maybe you've been hearing rumblings recently about a 3.8% sales tax on all real estate transactions. Below is a good article from our local Wisconsin REALTORS Association Best of Legal Hotline. There are also some links that you can go to and read more about it. I have taken the liberty to reprint this in its exact form therefore you have to put up with all the disclosures and disclaimers.
This Legal Hottips article may be reprinted only if it is reprinted in its entirety, including the disclaimers above and below the Hotline questions and answers. The Wisconsin REALTORS® Association Best of the Legal Hotline Service is an educational resource intended to keep the Association abreast of legal developments and concerns involving real estate practice in Wisconsin. We look forward to your input regarding the service, especially regarding the types of topics you would like covered.
1.) General Real Estate - Miscellaneous Issues
QUESTION:
The broker has heard about an added 3.8% tax that sellers must pay upon the sale of their property. Is there such a tax and is it really 3.8%?
ANSWER:
There have been e-mail and rumors circulating that proclaim that all real estate transactions will be subject to a 3.8% sales tax starting in 2013 under the new health care legislation – that statement is clearly untrue. On the other hand, there is a 3.8% Medicare surtax that will apply to the investment income of single taxpayers with adjusted gross incomes (AGI) over $200,000 and to married taxpayers with adjusted gross incomes over $250,000 starting in 2013. The tax applies to the smaller of the household's net investment income or the excess of AGI over the thresholds. Capital gains are treated as investment income for these purposes. In terms of real estate transactions, if these taxpayers sell their homes after 2012 and the gain exceeds $250,000 for a single taxpayer or $500,000 for married taxpayers, the amount of the gain over these amounts will be subject to the 3.8% tax. The tax also would apply to the gain from the sale of a second home, investment and commercial real state and net rental income from investment properties.
READ MORE ABOUT IT:
To learn more about how the 3.8% surtax will be applied and other details of the health care legislation, review the following online NAR resources:
• Frequently Asked Questions about Health Care Reform: http://www.realtor.org/small_business_health_coverage.nsf/docfiles/government_affairs_health_ref_faqs.pdf/$FILE/government_affairs_health_ref_faqs.pdf
• Myth Busters flyer: http://www.realtor.org/small_business_health_coverage.nsf/docfiles/government_affairs_myth_busters.pdf/$FILE/government_affairs_myth_busters.pdf
• Health Insurance Reform: NAR FAQs: http://www.realtor.org/small_business_health_coverage.nsf/Pages/health_ref_faq_med_tax_earned_income?OpenDocument
This Wisconsin REALTORS® Association Best of the Legal Hotline service is provided for you by the WRA's Legal Affairs Department. The service should be considered a general statement of applicable legal principles. Given this format, it is impossible to fully address all potential legal issues which might apply in any particular situation. A determination of any individual's legal rights in a transaction can only be obtained after complete analysis of the law and its applicability to the particular fact situation. Please contact the WRA Legal Hotline if additional information is needed, or private counsel, if legal advice is needed. Thank you for using the Wisconsin REALTORS® Association Designated REALTOR® Best of the Legal Hotline service.
This HOTLINE response should be considered a statement of applicable legal principles. Given the HOTLINE format, it is impossible to fully analyze all the relevant facts in any particular situation. A determination of one’s legal rights can only be obtained after complete analysis of the law and its applicability to one’s particular fact situation. Therefore, this response does not constitute legal advice and should not be relied upon as legal advice in litigation, arbitration or ethics matters. Private counsel should be consulted if legal advice is needed or if the caller is involved in litigation, arbitration or ethics matters.
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Gary Nathan and Amanda Mavis
Woodland Dev & Realty
15563 Railroad St
Hayward, WI 54843
715-699-4040
nathan@garynathan.com
www.garynathan.com
http://www.realestatehaywardwi.com/
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