Milwaukee Condo & Real Estate Scene

Medicare Surtax in 2013: Impact on Real Estate Transactions

Do you own real estate as an investment?  Are you looking to sell any of your investment properties during the next 12 months?  You may wish to consider selling them in 2012 as it may be more expensive to do so beginning in 2013.

According to the National Association of REALTORS® (NAR):  "Beginning January 1, 2013, a new 3.8 percent tax on some investment income will take effect.  Since this new tax will affect some real estate transactions, it is important for [you] to clearly understand the tax...Understand that this tax WILL NOT be imposed on all real estate transactions, a common misconception.  Rather, when the legislation becomes effective in 2013, it may impose a 3.8% tax on some (but not all) income from interest, dividends, rents (less expenses) and capital gains (less capital losses).  The tax will fall only on individuals when an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000 AGI."


A short video from Putnam explains how the tax works:




The NAR prepared the following PDF to provide additional information regarding the Medicare Surtax as well as case examples under various situations:

http://www.ksefocus.com/billdatabase/clientfiles/172/8/1437.pdf


Please leave a comment and let me know if you have any additional questions or concerns regarding the Medicate Surtax and its impact on your next real estate transaction.

Labels: Economy, Finance, Real Estate, Tax

posted by David Ray @ 1:10 PM