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Sell Investments and Real Estate before the end of 2012?

by | Dec 5, 2012 | Real Estate

Because of the new 2013 Obamacare taxes, should you sell real estate and other investments in 2012? Perhaps, but it depends.

Here are the new taxes to pay for Obamacare:

A 3.8% surtax on “investment income”. Investment income includes Capital Gains, Dividends, Interest, Rent, House Sales, Annuities, Partnerships, etc. This tax applies when your adjusted gross income exceeds $200,000 ($250,000 for joint filers).

Further, Capital Gains taxes which are currently about 15% may increase to 20 or 25% next year as the Bush Tax Cuts expire. Therefore an individual could incur capital gains of up to 28.9% next year (25% plus 3.8% surtax).

Many individuals are therefore selling investments and selling real estate before the end of this year.

Written by Robert J. Penny.

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