The new Medicare tax will take effect January 1, 2013, but how will this affect real estate?

General counsel Laurie Janik from the National Association of Realtors (NAR) says that, first of all, there is no 4% sales tax or transfer tax on the sale of a home in the bill. Instead, a new 3.8% Medicare tax would apply to households with an Adjusted Gross Income (AGI) of more than $200,000 for individuals or more than $250,000 for married couples.

There may also be other tax obligations for these households that have "net invested income," and calculating all of this can be rather complex.

Read more from Real Trends.

photo credit: nettsu

Posted in Education And Training, Buyer Resources, Seller Resources

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