Today is the “Day of the Dead” in Mexico where people honor their dead. And Benjamin Franklin once said: “…in this world nothing can be said to be certain, except death and taxes.” And speaking of taxes, several clients have asked me recently about how the new 3.8% tax will affect them when they sell their home.
First, let’s see where this 3.8% tax is coming from
The 3.8% tax is part of the Health Care Reform Act, which passed in 2010. According to the National Association of Realtors (NAR), this tax isn’t very well known because it was added at the last minute onto the law and it wasn’t considered in hearings.
However, this tax is now starting to be a concern to some people because it will go into effect in 2013.
Now, let’s see what this tax is and what it is not: Continue Reading…