Here is some great information courtesy of the Washington Realtors-
Is The Rumor Fact or Fiction?
4/23/2010
A couple rumors are circulating that are causing unnecessary concern among our members (and here is a hint, both of these rumors are false)
Rumor Number One
FICTION!
There is no requirement in the law to license a home before your clients are allowed to sell their home. In addition, there is not a requirement to make a home more energy efficient before it can be sold.
Want Proof? Here you go...
Rumor Number Two
FICTION!
An article has been circulating that mischaracterizes and overstates what is actually in the legislation. Here are the facts.
There is a new 3.8% Medicare tax for "High Income Filers" that goes into effect January 1, 2013 The tax is on unearned income and will apply ONLY to single filers with more than $200,000 of Adjusted Gross Income (AGI) and joint filers with more than AGI of $250,000. Unearned income includes interest, dividends, capital gains and net rents.
Keeping in mind the income limitations above, real estate income that will be affected for high-income filers include:
- Sale of a primary residence: If the gain from the sale of the property is below $250,000 (individual)/ $500,000 (couple) NO tax will have to be paid on the gain. The new Medicare tax would only apply to any gain realized over the $250K/$500K existing primary home exclusion that will bring the filers AGI over the $200K/$250K limits.
- Second Home/Investment property: The additional 3.8% tax will apply to the portion of the gain realized on the sale of a second home or investment property that will bring the filers AGI over the $200K/$250K limit.
- Rental Income: The portion of net rental income that exceeds the $200K/$250K AGI limits will be subject to the new 3.8% tax.
Want more info? Download NAR's Q&A
Rumor Number Three
Actually, we don't know for sure on this one, but we do know the top two are false rumors!
Do your friends and co-workers a favor and pass this email along to them if you think they have received bad information.
If you send $1,000 to this Nigerian banker, he will transfer $21 million dollars into your account. The recently-passed health care legislation imposes a 3.8% tax on homes sales. The new "Cap and Trade" Climate change bill in Congress requires a homeowner to license their home prior to selling it.
