The 3.8% Tax Real Estate Scenarios & Examples

Many of my clients are emailing me about this new law efective January 2013. Do you currently own a home and could possibly sell that home after 2013 ? There could be some new taxes that effect you. Its best to plan and be prepared for this. I would suggest you talk to a tax planner and financial advisor on how to handle this if you do plan to sell. NAR ( National Association of Realtors) has a great booklet that could answer some of the questions you have . Find the PDF booklet here



Beginning January 1, 2013, a new 3.8 percent tax on some investment income
will take eff ect. Since this new tax will aff ect some real estate transactions, it is
important for REALTORS® to clearly understand the tax and how it could impact
your clients. It’s a complicated tax, so you won’t be able to predict how it will
affect every buyer or seller.

Another way of thinking about these new taxes is to think of the 3.8% tax as being imposed on a portion
of the money that you make on your money — your capital (sometimes referred to as “unearned income”).
h e 0.9% tax is imposed on a portion of the money you make on your labor — your salary, wages,
commission and similar income related to earning a livelihood.

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