Real Estate, etc... by Eric Michael

3.8% "Real Estate" Medicare Tax

Hi Everyone!

Not sure if you heard or not, but there's a new tax in town. Actually, it's nationwide. It's called a "3.8% Real Estate Tax," but like a lot of taxes, there's a slightly different meaning to it.

My good friend Samantha Smith in Texas wrote this blog. You can check her out at SamIAmHouses.com.

Let me know if you have any questions!

Eric...

 

What ... there's a "3.8% Real Estate Tax" that came into effect January 2013!?!    


Yes, there is a new tax that is being tacked onto Real Estate transactions (sales), but it's really an Investment Income Tax and known as the 3.8% Medicare Tax


You see, when you sell your home, it's possible that you might have this extra tax, but NOT ALL Real Estate sales will have this tax.   In a nutshell, the 3.8% Medicare Tax is a tax on Investment Income, an income which is derived from the sale of the property. This tax will only be on transactions where the person selling the home EARNS more than the amount on the transaction AND the individual has an INCOME above $200,000 or couples who jointly have an income above $250,000.  

 

Most likely, the sale of your principal residence won't be subject to the 3.8% Medicare Tax. However, it is always best to consult with a tax advisor to see if this 3.8% Medicare Tax will apply to you. 
 
 
Here's 2 great PDF Pamphlets that the National Association of Realtor has created about the 3.8% Medicare Tax

 
 
 
In additon, here's an informative video from the National Assocation of Realtor's Director of Tax Policy, Linda Goold. 



 
 

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Let me know if I can help you or your family/friends with any Real Estate needs. Please know that I am never too busy for you or your referral & I would honor the chance to earn the business!  

 
*If there's a neighborhood that you'd like more information on, simply Email me or go to my Website to request a personal Home Search. 
 
*If you're thinking about Selling your home and would like to find out how much your home is worth in the current market, simply go to my Website to fill out the form.
 

Eric Michael, Real Estate Professional
Remerica Integrity, Realtors
41000 W. 7 Mile #105
Northville, MI 48167

Cell: 734.564.1519

Fax: 248.912.9996

www.ShortSaleInfoMI.com

www.EricMichaelOnline.com

Comment balloon 3 commentsEric Michael • February 16 2013 03:25PM
3. 8% "Real Estate" Medicare Tax
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