Knoxville, TN (PRWEB) October 11, 2012
The Holloway Group, the leading Knoxville real estate team at Gables & Gates, Realtors is educating clients on the infamous 3.8% tax included in the Health Care Reform Act. Troy Stavros, Broker/Partner with the Holloway Group stated, “We felt the need to get the facts to our clients because of the extensive amount of misinformation floating around the web via websites and mass email. We want our clients to be informed so it can ease their minds and put to rest the rumors about the 3.8% tax.”
Here is the information given to Holloway Group clients:
If the client can add up all income from every possible source for the year and it equals less than $ 200,000 ($ 250,000 on a joint tax return), the tax does NOT apply.
The client will never pay this 3.8% tax while purchasing a Knoxville home or other Knoxville investment property, as it will never be collected as a transfer tax on Knoxville real estate.
The client will never pay this tax at closing when selling a Knoxville home or investment property. Any profit gained over the exclusion threshold at settlement is just added to the client’s gross income for the year.
If and when the client sells a primary residence, the client will still receive the full benefit of the gain exclusion on the sale of a Knoxville home. The gain exclusion equaling $ 250,000 (single tax return)/$ 500,000 (married filing joint tax return). Only if your capital gain (profit) on the sale is greater than these amounts will the client then include any gain above these amounts as income on a tax return. However, if the client’s total income (including the gain above the exemption threshold) is less than the $ 200,000 (single)/$ 250,000 (joint) amount, the tax does not apply.
The tax is not only for Knoxville real estate gain, but it applies to other types of investment income as well. If a client’s income exceeds the $ 200,000 (single)/$ 250,000 (joint) amount, then the tax will also be applied to capital gains, interest income, dividend income and rental income (after expenses).
No matter how much a client makes in other types of income, if there is no income from capital gains, rents, interest or dividends, the tax does not apply.
The equation that figures the amount of 3.8% tax due will always protect $ 200,000 ($ 250,000 on a joint return) of a client’s income from the 3.8% tax. (i.e. If the client is single and has a total of $ 205,000 income, the 3.8% tax would never be enforced on more than $ 5,000).
Sometimes it is easier to understand a concept by hearing someone speak about it, instead of reading the facts. NAR has an informative video explanation of the 3.8% tax produced by the National Association of Realtors featuring their Director of Tax Policy. For additional information a link can be found here to a brochure on the 3.8% tax provided by NAR.
The Holloway Group at Gables & Gates, Realtors is committed to bringing the best possible experience to fruition for Knoxville home buyers and sellers. At the Holloway Group we don’t believe average is good enough for our clients. At the forefront of the Holloway Group is experience. Our team was created to serve our clients even better with specialization and expertise. We know that individually we cannot be everything to everyone so weve come together as a group, bringing all of our different strengths, so you always work with the best. We pride ourselves on being ahead of the curve on technology and how it can serve our clients. When you are a client of the Holloway Group, you can expect to have our entire team of professionals working to fulfill your individual real estate goal.
Miami Hard Money Lender, Quick Action Mortgage, Comments on Recent Housing Market Increase and Possible Effects on Florida Hard Money Lending
Sunday, October 28th, 2012Miami, FL (PRWEB) October 26, 2012
Many people are pleased with the U.S. Census Bureaus report of a 15% increase in new housing starts from August to September. This group of contented people includes hard money mortgage lender Jeff Karr of Quick Action Mortgage. Jeff Karr has been in the mortgage industry since 1988, so he knows first hand that when the housing market is doing well, businesses are also doing well. In a recent interview, Jeff Karr answered questions about how the improvement in the housing industry may positively relate to the hard money lending industry. For more information on Jeff Karr, Click Here for his website.
This is what Jeff Karr had to say about the recent 15% increase in new housing starts:
The U.S. housing market is getting back on the right track. That is great news for builders, buyers, and hard money mortgage equity lenders. Building new homes is critical in any real estate market and hard money mortgage equity loans will help people with poor credit. These loans will also help increase the much needed sales that the builders need to sell their properties. So, as you can see, hard money equity or mortgage equity loans are an important piece in the recovery of Americas housing market. These loans will increase builders inventory and increase property ownership for people with poor credit.
Since housing inventory is on the rise, it is vitally important that buyers are able to meet this increase in available houses. With recent changes in lending guidelines after 2008, buyers are looking for alternatives to the traditional bank loan:
U.S. Federal Banks are so difficult with their underwriting qualifications. Many people will not qualify for a mortgage loan because their credit is not up to par with the banks strict guidelines, and subsequently they will lose a chance to buy a house during the housing recovery. This is where a hard money mortgage equity loan comes into play. Jeff explains.
Builders putting their money into investment properties is a large part of the recovery. As young couples may not be able to afford a new home, they are able to get out of their parents extra room and get into an apartment. Savvy real estate investors are taking advantage of this and building apartment and duplex structures faster than ever. Jeff Karr explains the difference in qualifications between a hard money loan for investment versus homestead purposes.
With a hard money mortgage loan, if you are purchasing an investment property, all you need is equity and 45% – 50% cash down to qualify, regardless of your credit. If you are purchasing or refinancing a property where you will live, you still need to show the ability to pay back your loan with annual income. However, you can still qualify with bad credit. The banks guidelines may get even more strict in time so we are fortunate that these types of loans are available for buyers and builders.
Overall, these recent numbers show very positive movement in the U.S. economy, and at the perfect time as presidential campaigning is in full swing. While this is a very positive sign, only time will tell if this upward trend is consistent.
About Jeff Karr, Quick Action Mortgage:
Jeff Karr is the owner and president of Quick Action Mortgage, a licensed Miami hard money mortgage business serving Miami, Broward County, Dade, Palm Beach, Port St. Lucie, and the Florida Keys. They can be contacted directly at (305) 232-7817 or visit http://www.fkmortgage.com/ .
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