Effective January 1, 2013, net investment income for high-income households (over $200,000 individuals/$250,000 married couples) will be subject to the 3.8% Medicare Tax (part of the health care bill). Capital gains are included in the definition of net investment income, so this additional tax could apply to the sale of real property.
Primary homes will continue to benefit from the first $250,000/$500,000 exclusion before the tax applies. Second home sales do not have this exclusion, so the 3.8% tax would apply to “the portion of the gain realized on the sale of a second home or investment property that with bring the filer’s AGI (adjusted gross income) over the $200,000/$250,000 limit”.
Source: New Jersey Association of Realtors- legislative update 10/2010. The National Association of Realtors posted a Q&A on the provisions of the new health care bill on www.realtor.org/healthreform
Columbus Day Weekend
Â
Looks like the weather will cooperate for the free events scheduled for Columbus Day weekend.
In Avalon, The Green Fair will be held in the Community Hall on Saturday, October 9th from 10am to 3pm.  In the open lot next door (29th Street), the annual Seafood Festival will take place both Saturday and Sunday- 11am to 5pm.Â
The Art & Music Festival will take over 96th Street in Stone Harbor, Saturday and Sunday between 10am and 5pm. The local art galleries will join in with special exhibits for the weekend, too.