Have you heard about the 3.8% tax???
Many rumors have been going around about this tax. One of which we would like to clear up and explain a bit. The 3.8 percent tax that was slipped into the National Healthcare Legislation just hours before it’s acceptance is NOT a Real Estate Transfer Tax, however, it may affect real estate.
The tax is going to be charged on Net Investment Income. Investments include real estate and rents, stocks and bonds, gold, dividends, etc.
As I understand it individuals with income under $200,000 or $250,000 for a joint return are excluded from the tax. Any income reported above these amounts in the form of investment income will be subject to the tax as well as any other applicable taxes such as Capital Gains Taxes.
Capital Gains taxes are likely to change to 20 percent and if the government has their way it will rise to 39.6%.
Contact us at Premiere Properties of the South, LLC for more information and remember you should always contact your financial adviser regarding your finances.