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Mediare tax of 3.8% on homes sales

Beginning January 1, 2013, a new 3.8 percent tax on some investment income
will take eff ect. Since this new tax will aff ect some real estate transactions, it is
important for REALTORS® to clearly understand the tax and how it could impact
your clients. It’s a complicated tax, so you won’t be able to predict how it will
affect every buyer or seller.

Another way of thinking about these new taxes is to think of the 3.8% tax as being imposed on a portion
of the money that you make on your money — your capital (sometimes referred to as “unearned income”).
h e 0.9% tax is imposed on a portion of the money you make on your labor — your salary, wages,
commission and similar income related to earning a livelihood.

Read more here 

 

NAR booklet on Q&A


Alison Creamer, Realtor, ABR, CDPE
Direct 757.652.8880
Licensed to sell Real Estate in Virginia
Keller Williams Realty
Follow Me On Twitter

Sell Hampton Roads Homes

 

 

Comment balloon 1 commentAlison Creamer • August 05 2012 04:45PM
Mediare tax of 3. 8% on homes sales
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Beginning January 1, 2013, a new 3. 8 percent tax on some investment income will take eff ect. Since this new tax will aff ect some real estate transactions, it is important for REALTORS® to clearly understand the tax and how it could impact your… more