The Payroll Tax and the Increase for Mortgage Fees

Another tax is going to be implemented on real estate starting January 1st.

In order to cover the two month "payroll tax holiday" fees will be increased on government backed mortgages from Fannie Mae and Freddie Mac.

The fee will be an additional 0.1 "surcharge" paid monthly on mortgages from both government backed institutions.

A typical $200,000 mortgage will see an approximate increase of $17 per month.

The Payroll Tax is used to fund Social Security. A two month "tax holiday" will take around $33 billion dollars away from the Social Security Trust Fund.

Bottom line: There is not free ride. Regardless of your political affiliation one thing stays the same: Somebody has to pay!

GAR Contract Changes for 2012

We just completed our 2012 GAR (Georgia Association of Realtors) contract class.

Every year we go through this class as GAR continually refines our contracts. Every change helps our buyers and sellers and the amount of protection we offer them in their real estate transaction.

The biggest change to the GAR contracts is in reference to access to the actual contracts. Starting this month there some new procedures in place.

Real estate agents, who are members of the National association of Realtors and GAR, will continue to have full access to all GAR forms.

However if an agent is not a member of GAR, they will have to pay an annual subscription fee in order to access the GAR contracts.

The last option is that an agent can us non GAR contracts that will be available on both of the Atlanta area listing services FMLS and GAMLS. As this time those contracts will be available on a limited basis.

Bottom line: Real Estate agents in the state of Georgia are not required to be a member of the GAR or NAR. The Wells Team, of The Norton Agency, chooses to be members of these very important organizations. NAR provides us with a code of ethics, access to information, and training that allows us to provide the best service possible. Full access to the GAR contracts just solidifies our position a little more.

Obama Health Care Plan and Real Estate Tax

I just received an email from my Dad about a real estate tax that would be part of the Obama Health Care plan.

Beginning January 1, 2013, ObamaCare imposes a 3.8% Medicare tax on unearned income of “high-income” taxpayers which could apply to proceeds from the sale of single family homes, townhouses, co-ops, condominiums, and even rental income, depending on your individual circumstances and any capital gains tax exclusions. Importantly, the “high income” thresholds are not indexed for inflation so will reach increasing numbers of middle-class taxpayers over time.

I have attached two links to the National Association of Realtors website. One link provides details on the tax with the other providing the position of the National Association of Realtors concerning this subject.


http://www.realtor.org/small_business_health_coverage.nsf/pages/health_ref_faq_med_tax?opendocument

http://www.realtor.org/small_business_health_coverage.nsf/Pages/health_ref_faq_advocacy?OpenDocument

This provision has been discussed since late 2010 but is worth revisiting. Please familiarize yourself with this tax provision.

Bottom line: Regardless of your political views if you want to have a federal program you have to find the money to pay for it!

2012 Real Estate Predicitions? NONE!

After seven years in the real estate industry it would be safe to say that we have an idea what is going on in our local real estate market.

Instead of making bold 2012 real estate predictions I have decided to decline.

Why?

Because every other real estate agent, real estate company, and professional organization has already published theirs! My clients have read some of them but not many.

So my crystal ball stays in the closet with my ouija board, rabbits foot, and all other prognosticating devices that I own.

All I tell my clients is to be realistic and hope for a 2012 that was better than 2011.



Happy New Year to all!