Will the Health Insurance Reform Law Impose a 3.8% Tax on Home Sales?

 

Chances are, you may have received emails warning that the health insurance reform law contains a provision for a sales tax on homes. Per the National Association of Realtors, this information is false.

Below are the facts from the Atlanta Board of Realtors Government Affairs:

Beginning in 2013, the health insurance reform law will impose a 3.8 percent tax on unearned net investment income, which includes some (but not all) income from interest, dividends, rents (less expenses), and capital gains (less capital losses). The tax falls on only those individuals with an adjusted gross income above $200,000 for single filers or $250,000 for couples filing jointly.

The tax will not be imposed on all real estate transactions. Those claiming otherwise do not understand the interplay between the health insurance reform law and existing real estate tax law. The exemption for the first $500,000 of capital gain from the sale of a principal residence remains intact and is not impacted by the new law.

The National Association of REALTORS® has prepared an informational brochure that could be relevant to you .

Georgia Foreclosure Filings down in 2011

The AJC reported this week that foreclosure filings for 2011 has dropped with about a 16% decline from the perious year.  There may be an increase this year due to the slowdown of the foreclosure process so the banks could sort out the mess they had with all of the robo signings.

See the full article here at the AJC.

http://www.ajc.com/business/georgia-sees-dip-in-1300251.html