Misunderstood 3.8% Tax Hits Few Sellers Next YearPosted by Advantage Real Estate on
As of 2013, a new tax on home owners takes effect, but don't worry- it's not likely to affect you. Here's why.
Some sources have characterized the so-called Medicare surtax as a transfer tax on real estate, but it's not.
What the tax is: A 3.8% tax on investment income from some sources, such as dividends, interest payments, and capital gains; and a last-minute addition to healthcare legislation, enacted in 2010, to help shore up Medicare. It affects a limited group of high-income people.
Specifically, the 3.8% tax applies only to joint filers with an adjusted-gross income (AGI) above $250,000 ($125,000 for married filers filing separate returns) and single filers with an AGI of more than $200,000.
Another limitation is that it's imposed on the…
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