OH MY GOSH – a new tax on real estate!
The Truth About the 3.8% Tax on Real Estate
Most of you have heard the big scare, “Sell your house in 2012 or you will have to pay a sales tax on the sale on your home.” There is a new tax that will be imposed at the rate of 3.8% but it is NOT IMPOSED ON ALL REAL ESTATE TRANSACTIONS so stop the panic!
Yes there is a new tax for a married couple who’s ADJUSTED GROSS INCOME, meaning after their write-offs, exceeds $250,000. The tax is not a sales tax due upon the sale of your home but rather a Capital Gains tax applied when you pay your income tax. And, it is not paid on the sales price. There is a formula used to determine if there is any tax due.
In 2013 the new tax will be imposed on the upper end taxpayers, not the average American. The new tax applies to capital gains (less capital losses), interest income, dividends and rents received (after expenses).
Of course with any new tax change, there is propaganda to scare Americans. No one likes paying taxes. Most of us feel we are taxed to death but we all do appreciate the necessities our tax dollars provide. If we didn’t we would be living in the dessert in earth ships. I personally appreciate driving on paved highways and bridges, drinking clean water provided by my local municipality, and sanitation my city provides. I like the lakes and parks I take my daughter and granddaughter to. I am glad we have programs funded by the government like the North Texas Youth Connection that provides housing for our homeless teens. Taxes are a part of our lives and we benefit from them every day. It is the price we pay to live in the United States.
Stop the scare and spread the truth.
If you would like more information about the new tax and see examples of how the new tax will be applied go to the National Association of Realtors’ website. The link for a great PDF is http://www.ksefocus.com/billdatabase/clientfiles/172/8/1437.pdf.
All loans are subject to underwriter final approval, terms and conditions may apply. Subject to change without notice. Always consult an Accountant or Tax Advisor for full eligibility requirements on tax deductions.
Michelle Castle provides mortgage loans to all of North Texas and Southern Oklahoma. Call Michelle Castle at (903) 892-1998 if you are looking for a home loan in North Texas and Southern Oklahoma.