We asked local attorney Keith Schutzman for an explanation and here is what he shared:
I think the tax will have a small effect on the residential market in Scarsdale. The tax, intended to provide additional funding to the Medicare trust, applies only to taxpayers whose adjusted gross income (AGI) exceeds $200,000 for individuals, and $250,000 for married couples filing jointly. It applies to certain types of investment income, dividends and capital gains. The main reason I believe the tax will have a minimal impact is that with respect to sale of a principal residence, the existing exemption is $250,000 of gain for individuals and $500,000 of gain for married couples filing jointly. That exclusion eliminates the vast majority of sellers from any liability for the tax. Clearly there are potential sellers in this area who will have potential liability. There are some long time homeowners that will have that type of gain. However, my feeling is that even for those homeowners, the amount of tax (3.8% of the gain over $500,000) is not going to deter them from selling. For most, the personal reasons that go into a decision to sell after many years of ownership (health reasons for instance) for selling will outweigh the effect of the tax.
|Tax (Photo credit: 401(K) 2012)|
In the meantime, here are this week’s sales.
28 Franklin Road: (Pictured above) Spacious, sunny Colonial is on flat 1/2 acre in move-in condition. Beautiful kitchen with granite counters, SubZero frig, and sliding door to deck overlooking the property. The master suite includes a large marble bath and large walk-in closet. Charming home on one of Scarsdale's prettiest streets.
Sale Price: $1,600,000 Real Estate Taxes: $38,122
2 Bansom Road: Elegant center hall Colonial with nine foot ceilings on first floor, wainscoting in center hall and dining room, extra large garage and laundry room. Slate patio off kitchen. Nine foot ceiling in master suite. 1,000 square foot finished basement. 3-zone heat and cac. Cook's kitchen with large center island and stainless steel appliances. Sun-filled home with large rooms.
Sale Price: $1,500,000 Real Estate Taxes: $34,259
168 Johnson Road: Young Edgewood Colonial. Open kitchen/family room with woodburning fireplace. Spacious master suite with skylit bath and 3 large closets including a walk-in closet. All Anderson windows, hardwood floors thru-out, 3-zone sprinkler, 3-yr Timberline roof, updated baths, new water heater, new appliances, refinished deck, newly fenced in yard. Finished lower level with playroom, maid's room and many closets.
Sale Price: $895,000 Real Estate Taxes: $19,213
209 Glendale Road, Edgemont: Newly renovated and expanded four-bedroom Colonial with wonderful flow in ideal location. Designer's own kitchen (2004) with high quality cabinets, granite counters, stainless steel appliances, island with breakfast bar and eat-in area with French doors to spacious deck and flat yard. First floor includes cherry floors and oversized family room with high ceilings open to kitchen. Master bedroom with soaring ceilings, walk-in closets and luxurious bath.
Sale Price: $1,285,000 Real Estate Taxes: $34,795
580 Fort Hill Road, Edgemont: This sunny colonial just had a makeover! Freshly painted inside and out, and recently updated with a newer look. Five bedroom home on a lush .36 acres offers versatile space for today's savvy buyers. Central AC, first floor master bedroom and bath and 2-car attached garage.
Sale Price: $557,000 Real Estate Taxes: $26,353
Taken from: http://www.scarsdale10583.com/201208302672/real-estate/new-real-estate-tax-in-effect-in-2013-and-this-week-s-sales.html