ASK RAY, from Page 29
From The Wall Street Journal: “Absent guidance from the IRS, experts believe the tax applies to dividends, rents, royalties, interest (except municipal-bond interest), short-and long-term capital gains, the taxable portion of annuity payments, income from the sale of a principal home [more than] the $250,000/$500,000 exclusion, a net gain from the sale of a second home;and passive income from real estate and investments in which a taxpayer doesn’t materially participate, such as a partnership.”
My advice: talk to your CPA. The new tax is confusing to many people, and Internet blogs and chain e-mails are not the best source of information. Your CPA can advise you about your financial situation and any legal tax exemptions that may be available to you. The chances are the new tax won’t apply to you.
A final thought: Take heart, the value of your Seattle home is on the rise. Your home will likely be worth an additional 12 percent by the end of 2012.
RAY AKERS has been a licensed Realtor for more than 25 years and is a lifelong Seattle resident. Send your questions to email@example.com call (206) 722-4444.