The Real Deal Miami

New real estate tax already kicked in, regardless of fiscal cliff debate

January 03, 2013 01:30PM

While some uber-wealthy Americans were shaking in their boots awaiting a deal in Washington to avoid the “fiscal cliff,” those who dabble in real estate many have already been pulling out a fountain pen and the company checkbook. According to the Wall Street, those who receive rental income from properties such as apartment buildings, single-family homes and retail shops were hit with an investment surtax of 3.8 percent on January 1. The so-called Medicare tax, passed as part of the Affordable Healthcare Act in 2010, won’t affect real-estate companies or those who work full-time managing their real-estate portfolio. [more]