Inventory of Homes for Sale In Ann Arbor is Low, 3.8% Tax is Coming

Inventory in the Ann Arbor Area Market is Low

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 everyone including REALTORS® to clearly understand the tax and how it could impact Ann Arbor Real Estate sellers.

It’s a complicated tax, so you won’t be able to predict how it will affect every buyer or seller.

To get you up to speed about this new tax legislation, the NATIONAL ASSOCIATION OF REALTORS® has developed an informational brochure that you can download from the link below.

This brochure offers examples of different scenarios in which 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 – could be relevant to you.

Understand that this tax WILL NOT be imposed on all real estate transactions, a common misconception. 😀

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.

Consulting with a professional tax accountant regarding how a real estate transaction will effect you is always a good practice.

 The 3.8% Tax

***It is still not to late to sell your Ann Arbor, Saline, Dexter or Washtenaw County home or investment property. We are incredibly low on inventory and homes are selling fast.***

Call us today and see how the Missy Caulk can market and sell your home.

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