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Archive for the ‘Taxes’ Category

Cobb County, GA Schools

Sunday, August 2nd, 2015

If your home or workplace is in the Cobb county school district, you will notice heavier traffic this coming Monday, August 3. It’s the first day of school. If you would like to live in Cobb because of affordability, good schools and lower taxes, call me. I can help you find and buy your dream home!

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What is the new 3.8% tax on homes and how does it affect sellers?

Sunday, March 3rd, 2013

 

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Money City

A new income tax provision was started on January 1st, 2013, that may affect some sellers of real estate.  The tax is 3.8% of “net investment income”, if the sellers fit into certain categories:

1.     Joint income tax filers with adjusted gross income of $250,000 or more;

2.     Single income tax filer with adjusted gross income of $200,00 or more;

and

1.     Joint income tax filers with more than $500,000 profit on the sale of the principal residence;

2.     Single income tax filer with more than $250,000 profit on the sale of the principal residence;

OR

3.     Capital gain on the sale of investment real estate.

The new 3.8% tax applies to the LESSER of:

  1. a.     The investment income amount, or b. The excess of adjusted gross income over the $250,000 (joint) or $200,000 (single).

According to the National Association of Realtors, this new tax will not affect many home sellers, based on the income threshold and the gain threshold on principal residences.  The sellers of investment properties will be taxed on investment income that exceeds the income thresholds above.  See http://www.realtor.org/small_business_health_coverage.nsf/docfiles/government_affairs_invest_inc_tax_broch.pdf/$FILE/government_affairs_invest_inc_tax_broch.pdf for further explanations and examples.