New Medicare Tax on Real Estate Begins 2013!
Saturday, August 4, 2012
Beginning in 2013, a new 3.8% tax will be imposed on investment income. This tax affects “high-income earners”, defined as single households with adjusted gross incomes of over $200,000 and married households above $250,000. Capital gains are treated as investment income.
This 3.8% tax will be required to be paid on 100% of the gain from the following:
- The gain from the sale of second homes.
- The gain from the sale of investment and commercial real estate.
- The net rental income from investment properties.
The gain from the sale of a primary residence will be paid on the gain exceeding $250,000 for single households or $500,000 for married households.
Information received from: Wisconsin REALTORS Association, 4801 Forest Run Rd., Madison, WI 53704