Stop Believing Email Forwards

Not only are email forwards annoying, they are often false. I got one this morning that really put me over the edge. Have you seen this one? It starts, "This should stimulate the Real Estate Economy. Did you know under the new Health Care Bill ALL real estate sales are subject to a 3.8% sales tax?" The email then goes on to state that this will go into affect until 2013 and you should blame it on the nasty politicians.

I don't want to sound like I am defending politicians (trust me, that's not my purpose at all), but it is important to know that this information is not true. There is a real estate related tax of 3.8% in the new Health Care Bill (which is not good for the real estate industry), but it will NOT affect ALL real estate transactions. In fact, it will likely not affect anyone selling their primary residence. Nonetheless, this is something real estate practictioners and investors should be aware of...and upset about.

You can read the details about how this might impact real estate investments at this article from The National Association of REALTORS and here is a clip from that:

"...when the legislation becomes effective in 2013, it may impose a 3.8% tax on some (but not all) income from interest, dividends, rents (less expenses) and capital gains (less capital losses). The tax will fall only on individuals with an adjusted gross income (AGI) above $200,000 and couples filing a join return with more than $250,000 AGI."

Good News: Triangle to Keep BIG Employer

Red Hat is expected to stay in the Triangle and add jobs. Governor Bev Perdue went to Twitter this morning to give everyone a heads up that the big announcement would be coming soon and it would have a big impact on Wake County. See this WRAL report for more on the announcement and Red Hat.

More Tax Paperwork For Landlords

Someone shared this link with me from the Washington Examiner. This expains that anyone receiving rental income must begin reporting ALL PAYMENTS TO CONTRACTORS ABOVE $600 for the year beginning in 2011. So, start collecting Tax ID numbers and social security numbers because you now have to give every contractor you use a 1099 form to report what you paid them.