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 REALTORS® to clearly understand the tax and how it could impact clients.

The tax will not be imposed on all real estate transactions. It may impose a 3.8 percent tax on some (but not all) income from interest, dividends, rents (less expenses), and capital gains (less capital losses). The tax will fall on individuals with an adjusted gross income above $200,000 and couples filing a joing return with more than $250,000 adjusted gross income.

Resources

The 3.8 Percent Tax FAQs

The Top Ten Things You Need to Know About The 3.8 Percent Tax

The 3.8 Percent Tax (video)

The 3.8 Percent Tax: Real Estate Scenarios & Examples