New Tax! Attention Investors in Otsego and Delaware Counties!
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 to our customers and clients in Otsego and Delaware Counties, it is important for you to clearly understand the tax and how it could impact you. It’s a complicated tax, so you won’t be able to predict how it will
affect every one of our buyers or sellers.
This new tax — passed by Congress in 2010 with the intent of generating
an estimated $210 billion to help fund President Barack Obama’s health care
and Medicare overhaul plans.
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 with an adjusted gross income (AGI) above $200,000 and couples
filing a joint return with more than $250,000 AGI.
At Century 21 Chesser Realty, our agents stay up on the latest news affecting real estate and our customers and clients in Upstate NY.
For more information on the new 3.8% tax on some investment income that will take effect January 1, 2013, please copy and paste the following link into your browser:
If you still have further questions, you should contact your accountant.