At his annual economic forecast event held on Thursday February 23 at the Austin Convention Center, Angelos Angelou pointed to a number of really positive indicators for Austin in the coming months. In fact, he used the phrase "fantastic news," which is just exactly what real estate investors want to hear. For instance:● Job growth at the rate of 19,000 new positions this year and at least 20,000 in 2013. Why does that look so good? We only picked up 13,000 last year. In fact, we've gained back all the jobs that were lost during the recession and Angelou thinks the local unemployment rate, which is roughly 6 percent right now is headed below 5 percent. Granted, these are not likely to be high-paying jobs, but employment puts purchasing power in…
Let's talk about taxes. Okay. Let's talk about one tax. The new 3.8% tax on some investment income that will take effect on January 1, 2013. First, let's cut straight to the myth. This tax WILL NOT apply to all real estate transactions. In fact, it's not just a real estate tax, it's a capital gains tax on some investment income.
Who will pay the tax?
- Individuals with an adjusted gross income of more than $200,000.
- Couples who file a joint return with an adjusted gross income of more than $250,000.
What will be taxed? SOME, but NOT all:
- rents (less expenses)
- capital gains (less capital losses.)
And where the heck did this tax originate? That part is interesting, and it's the aspect of the new tax…