What Real Estate Transfer Tax?
Posted by Rocio Rincon
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(Thanks to Lane Bailey over at ActiveRain for the following information).
There is indeed a tax that affects the sale of real estate in the new health care law passed this year.Starting in 2013, individuals with incomes over $200,000 will have to pay a 3.8% tax on profit from the sale of their primary residence or investment properties over a certain profit threshold. The exact amount will be based on a formula that includes the profit from the property and the income above $200,000. The tax is not an income tax, but rather it is a "payroll tax"… officially it is a Medicare Tax.
This new tax applies to investment income, dividends, real estate profits-- all "unearned income".
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Home Selling
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Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the HRIS.
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