Having survived last week’s End of the World, you might think the coast would be clear for a while. But -- at least when it comes to Greenwood Village and Denver Area real estate matters -- some would have you believe we are face-to-face with another extreme dire threat: the Internet buzz about a (gasp!) huge new federal sales tax on all real estate transactions.
This one was all over the web even before passage of the federal health care act. It has staying power, and comes in several forms. The one that circulates most often is an email message warning that a 3.8% Medicare surtax that is going to hit “average, middle-class investors” on January 1. Supposedly ALL real estate transactions are subject to the tax “no matter how low their income might be…”
If Greenwood Village and Denver Area real estate holders (in other words, most of us) are more than a little skeptical about this supposed mega-tax, you can understand why. The End of the World was also an Internet rumor, but now that it’s clear the Mayans found a whole new calendar behind the last page of their old one (giving us a welcome 5,125-year reprieve), everyone is duly cautious about these dire email warnings.
Now, I’m neither a tax attorney nor CPA, so I don’t offer tax advice -- but I can tell you that you will be relieved if you visit any of the fact-checking resources (they survived the End of the World, too!). There you will find that only a tiny percentage of Greenwood Village and Denver Area real estate home sellers would ever fall under the new tax. It touches the extreme opposite of “average, middle class” homeowners. To even qualify for the tax, a couple has to have an income exceeding a quarter of a million dollars a year (before profits from real estate are counted). Even then, when a couple sells their personal residence, the sale has to clear $500,000 of profit before the tax would apply; ($250,000 for individual filers).
Earlier this year I posted a video from the National Association of Realtors dispelling many of the rumors and explaining the 3.8% Real Estate Tax to help pay for the health care legislation. You can Click Here to watch the short video from NAR.
Clients who might be affected by the new tax don’t need an Internet rumor to tell them to seek expert tax advice! So if you are preparing to sell in the New Year, don’t let the Web trouble you: can give me a call!
Jason Peck is part of the Carr & Peck Real Estate Experts at Coldwell Banker. He has been recognized locally and nationally as in expert in real estate. Locally he is 2nd in Denver Metro sales out of 5,000 agents and has been recognized by the Wall Street Journal and Real Trends as one of the top selling agents in the country. He is a top 10 agent for Coldwell Banker nationally in homes sold. He is co-author of the National Best Selling Book, “The New Rise in Real Estate”. For more information feel free tocontact him.
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Author:Jason Peck Phone: 720-446-6301 Dated: December 24th 2012 Views: 1,334 About Jason: ...
Recognized as a top selling team in Denver Metro area. Nationally recognized for homes sold by the Wall Street Journal, Real Trends and Top 5 agent by RIS Media. Our goal is simple and that is to exceed our client's expectations by providing professional service, expert advice and exceptional results.
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"We worked with Karen Venier for a relatively short time for a good reason: our home sold at full price within hours of hitting the market! While it’s true that the Denver housing market is “hot,” credit for the speed and ease of our transaction belongs to Karen. She was great to work with, giving us perfect advice about readying our home for sale and then expertly guiding us from offer to close. Along the way, we came to appreciate Karen for her skillful blend of professionalism and personal touches – like dropping off our favorite beverages during a particularly stressful time in our move or shoveling our driveway in subzero temps after we’d left the state (way beyond the call of duty!). Now that we’ve relocated to Wisconsin, we keep saying that we wish Karen could be our buyer’s agent here. Since that’s not possible, we’ll shout her name loudly to whoever might be looking for a home in the Denver area.
Thanks for the great work, Karen!