Mediaboss Marketing

William H. Poteet Jr., Naples

President, Naples Area Board of Realtors

Tax advisory

As tax time nears, rumors are circulating again on the Internet and via email about a 3.8 percent tax on real estate that will take effect in 2013.

---- There is a common misconception that the new tax, which was included in the health-care reform legislation, is a sales tax or transfer tax that will be imposed on all real-estate transactions. This is untrue.

---- The 3.8 percent tax may be imposed on some high-earning homeowners income from interest, dividends, rental income (less expenses) and capital gains (less capital losses).

---- The tax will fall only on individuals with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000 AGI. The tax is expected to hit only some portion of investment income for upper-income homeowners when they sell a home or investment property.

---- The purpose of the tax, which was inserted at the last minute into the legislation, is to offset some of the cost of health-care reform. The tax is expected to generate $325 billion over eight years.

If you fall in the income range and are considering selling real-estate properties, its important to talk about your specific situation with a Realtor and your tax adviser. You also can download a free brochure by the National Association of Realtors at http://www.realtor.org/government_affairs..

---- The Naples Area Board of Realtors will continue to keep homeowners informed as the 2013 effective date approaches as we seek to clear up any confusion about how you may be affected in a real-estate transaction.

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Letter: Tax advisory