Real estate/homeowning is a major asset and a major purchase. It has also proved to be essential to the economy and the Wisconsin real estate market has been in recovery for the past year. We want to see that continue and do all we can to promote the benefits of homeowning. Recently, some information has been floating around implying that all real estate trasactions will be affected by a 3.8% tax effective in 2013. A new tax on a recovering market would be difficult to take. Let’s set the record straight with these comments from First Weber Group CEO, Jim Imhoff on the 3.8% real estate tax:
From our Chief Executive Officer, Jim Imhoff
“There has been a lot of misinformation about the 3.8% tax being imposed with the health care reforms. A common misconception is that it applies to all real estate transactions. It does not. It applies to investment income. It is not a tax on the sale of a house or real estate, per se. Here is a link to the TRUE information about the 3.8% tax.
Does NOT apply to all real estate transactions. Effective January 1, 2013.
The link above shows different scenarios and examples of when the tax would apply and when it won’t. The tax is a complicated one – it will be difficult to see how it will affect individual buyers and sellers. It is recommended you see a tax advisor for professional advice and be sure to access the brochure from the National Association of REALTORS linked above.
Thank you for reading the First Weber Wisconsin real estate & Wisconsin living blog for information on common misconceptions regarding the 3.8% tax. We’re happy to share the resources of the National Association of REALTORS with you to make sure you are aware of this issue. If you think this information is valuable, please share. If you are now confident in buying and selling Wisconsin real estate, please search firstweber.com