Things You Need to Know About the 3.8%  TAX

I know by now you all heard about the health care reform that has included a new 3.8%  Real Estate Tax.  There are a lot of things been said about this and in fact many aren't true. 

The President of C.A.R.(California Associations of Realtors).   Has put this list for us Realtors and for the  public to know what is going to exactly happen when this hits the streets. 

Please feel free to check the article Below by clicking on the writing. 

Learn the most important takeaways for REALTORS® when it comes to the 3.8% tax that's part of health care reform:  

 

1. When you add up all of your income from every possible source, and that total is less than $200,000 ($250,000 on a joint tax return), you will not be subject to this tax.
2. The 3.8% tax will never be collected as a transfer tax on real estate of any type, so you’ll never pay this tax at the time that you purchase a home or other investment property.
3. You’ll never pay this tax at settlement when you sell your home or investment property. Any capital gain you realize at settlement is just one component of that year’s gross income.

Also if you have any more questions please feel free to contact us: