Wisconsin Living and Real Estate in Wisconsin, Lisa Bear 262-893-5555: 3.8% REAL ESTATE Tax Will Go Into Effect in 2013

Wisconsin Living and Real Estate in Wisconsin, Lisa Bear 262-893-5555: 3.8% REAL ESTATE Tax Will Go Into Effect in 2013: 3.8% Tax Will Go Into Effect in 2013 ...

3.8% REAL ESTATE Tax Will Go Into Effect in 2013

3.8% Tax Will Go Into Effect in 2013

By Linda Goold, Ken Wingert

Now that the Supreme Court has upheld the health care legislation, all of its major provisions remain in effect, including the new tax that was designed to affect upper income taxpayers.  The 3.8% tax is imposed ONLY on  those with more than $200,000 of Adjusted Gross Income (AGI) ($250,000 on a joint return).  The tax applies to investment income, defined as interest, dividends, capital gains and net rents.  These items are all included in an individual's AGI.  A formula will determine what portion, if any, of these types of investment income would be subject to the tax.

The tax is NOT a transfer tax on real estate sales and similar transactions.  Not long after the tax was enacted, erroneous and misleading documents went viral on the Internet and created a great deal of misunderstanding and made the tax into something far more draconian than the actual provisions.
The new tax does NOT eliminate the benefits of the $250,000/$500,000 exclusion on the sale of a principal residence.  Thus, ONLY that portion of a gain above those thresholds is included in AGI and could be subject to the tax.

The amount of tax will vary from individual to individual because the elements that comprise AGI differ from taxpayer to taxpayer.

Wisconsin Living and Real Estate in Wisconsin, Lisa Bear 262-893-5555: Woulda, Shoulda, Couda

Wisconsin Living and Real Estate in Wisconsin, Lisa Bear 262-893-5555: Woulda, Shoulda, Couda

Cost of a Home: Impact of Interest Rates

Cost of a Home: Impact of Interest Rates

by The KCM Crew on October 2, 2012 

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The buyer should always look at the COST of a home, not just the PRICE. The cost is determined by the price and the mortgage interest rate which is available at the time. Below is a list of the interest rates over the last ten years and the impact they have on a $100,000 mortgage payment.