Big Home Sales, Big Tax Savings
By Les Christie
Sales of luxury homes
spiked in the final months of 2012, as high-end homeowners rushed to take advantage of lower tax
rates before Jan. 1.
By selling their luxury homes before the end of 2012, these wealthy homeowners avoided two tax increases
on Jan. 1 and a huge payout to the IRS.
Not only were these sellers concerned that fiscal cliff
talks would lead to a hike in the capital gains rate, but many were already facing a 3.8 percent Medicare surtax on investment income slated to go into effect in 2013 as part of the Affordable Care Act.
See more on CNNMoney:
Rich Barton: King of Travel and Real Estate
Protect Your Home: Lessons from Sandy
America's Best Places to Live
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find foreclosures in your area.
See celebrity real estate
Follow us on Twitter at @AOLRealEstate or connect with AOL Real Estate on Facebook.