Archive for the ‘taxes’ Category
There IS a New Real Estate Transfer Tax in the ObamaCare Law
- Image via Wikipedia
One of the forums in which I participate has had stories on both sides of this issue for a couple of months… with the more conservative members saying that there is a 3.8% sales tax on the sale of homes, and those that are more supportive of the President and his policies saying that there isn’t.
Neither side was real specific about their information source… talk radio for some, blogs for others… nobody seemed to be going to the source… the 20,000+ page law signed by the President. In all fairness, there is a LOT of room in 20,000 pages to hide a lot of little Easter Eggs like this. And being fair to the other side, if there isn’t a tax, the bill isn’t going to say “there is not a tax” anywhere…
I have an answer…
There is indeed a tax on the sale of real estate. It doesn’t apply to many people, but it WILL apply to some people that have profit from the sale of their homes. Starting in 2013, those with incomes over $200,000 will have to pay a 3.8% tax on profit from the sale of their primary residence or investment properties. The exact amount will be based on a formula that includes the profit from the property and the income above $200,000. The tax is not an income tax, but rather it is a “payroll tax”… officially it is a Medicare Tax.
It does not just apply to real estate, but also applies to investment income and dividends.
The bottom line is that both groups are right… and both are wrong.
But…
It will drive another nail into the luxury real estate market. It has been in the doldrums for a while. Adding new taxes will not get it going again. And if you are thinking that this only affects ‘the wealthy’, think again. Those homes are not built by ‘the wealthy’. Those homes are not renovated by ‘the wealthy’. Those consumers are more likely to hire contractors to do improvements. And they are more likely to update more often… They are a driver in the housing sector. This added tax is NOT putting gas in the tank…
View CommentsGwinnett County v Gwinnett’s Cities…
Effective on March 1st, the issue between Gwinnett and 15 of its cities has been upgraded by the State of Georgia. The 15 cities and Gwinnett are now listed with the state as No Longer Qualified Local Governments.
View CommentsFlashback Friday and the County Assessors facing reality
Last year I wrote about Senate Bill 55 in the Georgia Senate. Basically, the bill required the Counties to include foreclosures in assessments. Previously, assessments for taxes excluded foreclosures, so they (falsly?) increased values and tax revenue to the counties.
While that makes it tough for the counties, it is a needed break for home owners. The counties complained that they would lose revenues… well, the people are losing revenue, too. They have to suck it up.
In the last year, the bill quietly passed and was signed into law by Governor Sonny Perdue.
Here is the link to the original post.
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View CommentsCalling Private Briscoe… Gwinnett Airport
The Gwinnett County Commission is looking at an offer to privatize Briscoe Field. Currently, the county owns and runs the airpost, near Lawrenceville, off GA316. It has an operating budget of about $1,000,000/year. All of the money generated in fees and leases have to be plowed back into the budget for the airfield.
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