3.8% Home Sale Tax in 175 Days

Beginning January 1st, 2013, "high-income" tax payers are penalized 3.8% on the sale of their house.

As we know, "high-income" means income in the amount of $1,000,000, $250,001, whatever is deemed to be politically feasible.

That's $3,800 on a $100,000 home, $15,200 for a $400,000 home, etc...

This bill is will certainly affect the retiring generation, -- who often downsize their homes and coincidentally often receive a lot of medical care.

"The tax could apply to proceeds from the sale of single family homes, townhouses, co-ops, condominiums, and even rental income, depending on your individual circumstances and any capital gains tax exclusions. Importantly, the “high income” thresholds are not indexed for inflation so will reach increasing numbers of middle-class taxpayers over time." [Quote from 2010 article: http://www.gop.gov/blog/10/04/08/obamacare-flatlines-obamacare-taxes-home]

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Edna Jackson Explains Tax Increase to NLC

The National League of Cities (NLC) last meeting in Charlotte, N.C., focused on the impact of the federal debt and debt ceiling on local city governments. The management of spending cuts and decreasing tax revenue was also of central concern.

“NLC priority issues [are] job creation, investments in local economies, reauthorization of federal transportation programs and comprehensive reform of the immigration system,” according to the NLC press release. To help the economy rebound, the NLC posits that “funding must be preserved for key programs that invest in cities and support employment in both the public and private sector.”

Savannah's Alderman-at-large Edna Jackson explained how temporary tax increases and budget cuts were successful solutions.

“If you can get people to understand what is going on and communicate with them they are willing to help,” said Jackson.

Savannah also involved employees in reviewing city department budgets to look for possible cuts. “The majority of employees worked with us,” Jackson said. “They were tough on some of the departments. But the reason it worked was because we had input from everyone” she told Amy Elsbree, NLC reporter.

The entire article can be read here.

A. Joseph Marshall
Commercial Real Estate Agent
Savannah, Ga.