Luxury Connect
Meet the Luxury Leaders | October 19-20 | Beverly Hills

Real estate brokers who deal in high-end properties have been reporting an upsurge in listings. Some sellers are desperate to sell their homes before Jan. 1, 2013, when they could be subject to much higher tax rates on capital gains. Are these sellers right to be worried? The short answer is "yes," some sellers should be concerned about higher taxes on capital gains in 2013. If the Bush tax cuts are allowed to expire at the end of 2012, some taxpayers will see an increase of 8.8 percent on their taxes on long-term capital gains, including gains on home sales. Currently, the maximum tax rate on long-term capital gains is 15 percent. If the Bush tax cuts expire, this will go up to 20 percent on Jan. 1, 2013.Also on Jan. 1, the new Medicare tax enacted as part of Obamacare will ta...