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Grand Rapids Top 12 City in US for Sustainability

by Mark Brace

In 2011, The Daily Beast included Grand Rapids in a slideshow of Americas dying cities. In 2012 Grand Rapids is included in the top 12 cities for sustainability. Grand Rapids Mayor George Heartwell responded to the editor listing several awards and qualities that show Grand Rapids is continually growing. Since then, Heartwell has launched a new recycling program that allows Grand Rapids residents to put all recyclables like paper, plastic, cardboard and glass into a single container. By doing this it simplifies the recycling process by keeping everything together. After the items are collected the city sorts through them. The program has increased recycling in Grand Rapids 80 percent and saves the city $100,000 because there is less trash to incinerate. 

-Mark Brace


Grand Rapids Top 10 City For Job Growth

by Mark Brace

Check out the link below to see the top cities for job growth. Grand Rapids being listed at number 10.

US top Cities for Job Growth

-Mark Brace

Explanation of the New 3.8% Tax

by Mark Brace

 

The National Association of Realtors has prepared a new guide on the 3.8% tax affecting some real estate transactions. The tax is not a transfer tax on real estate sales and similar transactions (The Real Estate Transfer Tax is a tax on the sale, granting, and transfer of real property or an interest in real property).  Not long after the tax was executed, misleading documents went viral on the internet and created a great deal of confusion. Due to this confusion the tax was generally misunderstood.  

The new tax does NOT eliminate the benefits of the $250,000/$500,000 exclusion on the sale of a principal residence.  Therefore, only that portion of a gain above those thresholds is included in Adjusted Gross Income (AGI) and could be subject to the tax.

For example: John and Mary sold their principal residence and realized a gain of $525,000. They have $325,000 AGI (before adding taxable gain). The tax applies as follows:

 

John and Mary sold their principal residence and realized a gain of $525,000. 
h ey have $325,000 Adjusted Gross Income (before adding taxable gain). 
h e tax applies as follows:
AGI Before Taxable Gain $325,000
Gain on Sale of Residence $525,000
Taxable Gain (Added to AGI) $25,000  ($525,000 – $500,000) 
New AGI $350,000 ($325,000 + $25,000 taxable gain)
Excess of AGI over $250,000 $100,000  ($350,000 – $250,000)
Lesser Amount (Taxable) $25,000  (Taxable gain)
Tax Due  $950 ($25,000 x 0.038)

AGI Before Taxable Gain $325,000 

Gain on Sale of Residence $525,000

Taxable Gain (Added to AGI) $25,000  ($525,000 – $500,000

 New AGI $350,000 ($325,000 + $25,000 taxable gain)

Excess of AGI over $250,000 ($100,000)= ($350,000 – $250,000)

Lesser Amount (Taxable) $25,000 (Taxable gain)

Tax Due  $950 ($25,000 x 0.038).

REALTORS® should familiarize themselves with the tax, but should advise upper income clients or clients who have a large capital gains to seek the guidance of a tax professional.  The amount of tax will vary from individual to individual because the elements that comprise AGI differ from taxpayer to taxpayer.

Sources and links:

http://www.realtor.org/topics/health-care-reform/top-10-things-you-need-to-know-about-the-38-tax

http://speakingofrealestate.blogs.realtor.org/2010/11/24/the-3-8-tax-is-not-a-real-estate-transfer-tax/

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

Below is a chart listing the tax changes with the expiration of the Bush tax cuts.

http://www.realtor.org/small_business_health_coverage.nsf/docfiles/government_affairs_health_ref_marg_tax_rates.pdf/$FILE/government_affairs_health_ref_marg_tax_rates.pdf

http://www.revenue.nh.gov/faq/dra_800.htm

http://www.ksefocus.com/billdatabase/clientfiles/172/8/1437.pdf

Displaying blog entries 1-3 of 3

Contact Information

Mark Brace, Realtor, ABR, GRI, CRS, SRES, e-PRO, A
Berkshire Hathaway HomeServices Michigan Real Estate
3000 East Beltline NE
Grand Rapids MI 49525
Direct: (616) 447-7025
Cell: (616) 540-7705
Fax: (616) 447-7025

Berkshire Hathaway HomeServices - Michigan Real Estate is a full service, locally operated real estate brokerage company backed by the strength of a solid national and global brand. Our full service businesses include Residential, Commercial, Relocation, Mortgage, Insurance, Home Services and New Homes & Land. Our core values, service philosophy, cutting edge technology, and most importantly our people are what make us the leading real estate company in Michigan. We are committed to providing the highest quality real estate services possible and making each customer's experience one that surpasses their expectations.