Get the facts about the national real estate transfer tax (or lack thereof!) Updated March 13, 2012

1. No real estate transfer tax
in health care bill
ISSUE: There is no national real estate
transfer tax in the Health Care bill passed by
Congress.
WHAT THERE IS: There is a 3.8%
Medicare tax on investment income as
defined as interest, dividends, capital gains
and net rents. The 3.8% Medicare tax is
imposed ONLY on those individuals with
more than $200,000 of Adjusted Gross
Income (AGI) ($250,000 on a joint return).

3. Henrietta’s rental income is from a trade or business so it is NOT treated as
investment income. Thus, she is NOT subject to the 3.8% investment income tax.

6. Questions?
Ryan Castle
Government Affairs Director
Charleston Trident Association of REALTORS
Ryan@CharlestonRealtors.com
843.763-5212
@ryanfcastle
www.ryanfcastle.com