Raining Cats And Blogs: The 3.8% Tax On Investments Is ...

?

?

Starting in January 2013, a new tax on home owners takes effect but it is not likely to affect very many sellers. The tax will not be collected at the time you purchase a home or investment property and it is NOT a transfer tax on real estate of any type. It will also NOT be collected at the settlement when you sell your home or investment property since the capital gain you realize at settlement is just one of the things that determine the years gross income.

The 3.8% tax on investment income ( dividends, interest payments, capital gains, etc) was a last minute addition to the healthcare legislation that was enacted in 2010. It was added to help shore up Medicare and it will only affect a small group of high-income people. It only applies to joint filers with an adjusted-gross income (AGI) above $250,000 ($125,000 for married couples filing separate returns) and single filers with an AGI of more than $200,000. If you aren't in that group, you don't even have to think about it!

This tax did not change the existing capital gains exclusions for profits on the sale of personal residences.?You can still exclude up to $500,000 in profit if you file jointly and $250,000 if you file separately as long as you lived in the property as a principal residence for at least two years out of the five year period that ends with the date you sell the home.

As with anything to do with taxes, your particular situation and tax issues could have different circumstances so consult a tax attorney or your accountant.?

Source: http://rainingcatsandblogs-snt.com/post/3540206/the-3-8-tax-on-investments-is-misunderstood-very-few-sellers-affected

Mayim Bialik Rich Kids of Instagram felix hernandez julia child Ron Palillo Texas A&m taylor swift