By Patricia Kramer and Patricia Lou Martin
As tax time approaches, many individuals may be uncertain about changes to
- In the wake of last month’s congressional negotiations to avoid the so-called “fiscal cliff,” the passage of
(ATRA) has indeed altered some tax provisions in an effort to temporarily resolve the nation’s budget woes. While retaining certain aspects of the Bush-era tax cuts, this legislation also makes adjustments to increase federal revenue over the next ten years. However, none of these changes will alter homeowner tax rates until the 2013 tax year.
New tax rates: what’s new, and what stays the same?
What are the primary changes enacted by the ATRA, and how will they affect you in the coming years? The ATRA will primarily influence tax payments for those in upper income levels across the country by increasing tax rates on those who earn more than $400,000 per year (or $450,000 if married and filing jointly), and by boosting the top rate on long term capital gains from 15% to 20%. In addition, the act will also increase estate taxes for the top tax rate from 35% to 40%. Some tax provisions from The American Recovery and Reinvestment Act of 2009 were given temporary extension through 2017, while the 2010 payroll tax reduction was not extended and will therefore return such taxes to their original rates of 6.2% for employees and 12.4% for self-employed individuals.
Looking ahead to the 2013 tax year, individuals and homeowners with upper level incomes may wish to discuss impending tax rate changes with an experience real estate agent before planning to buy, sell or invest in property here in San Diego. While next year’s tax returns may seem very far away, it is never too early to start planning ahead – and securing your financial future.
Plan ahead with help from the ranch and coast real estate experts
, we represent the best of ranch and coast. With decades of local experience throughout San Diego’s North County and an outstanding track record, we offer our clients unbeatable customer service and seasoned expertise. Whether you are looking for a new
, considering a sale in Rancho Santa Fe or searching for
, Del Mar or Solana Beach, our team is here to help. And that’s not all: get in touch with us today to discuss any questions or concerns you may have about estate tax rates, financing, mortgage rates and more. We pride ourselves on our up-to-the-minute understanding of today’s economy and will be happy to help you make sense of the ever-changing market.
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