Tag Archives: principal residence

No Cliffs on Hilton Head Island

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Most Hilton Head buyers base their purchasing decision more on emotion than logic.  As we drive around the Island, Hilton Head buyers rarely ask how much mortgage interest they get on this one or that one.  While the mortgage interest deduction is important, its not the main reason to own a great property on Hilton Head.  There are other reasons and with over 10,000 baby boomers turning 65 everyday we do expect to get calls even if the Bush Era Tax does expires.  Hopefully it does not. Continue reading →

Medicare Tax~HiltonHeadRealEstateNews.com

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[youtube]http://www.youtube.com/watch?v=llf4z5PAd2c[/youtube]

The Medicare Tax is a 3.8% tax that goes into effect January 1, 2013 and it does not apply to all Hilton Head owners.  Only “high income” owners with Adjusted Gross Incomes(AGI) of more than $200,000 for individuals or more than $250,000 for married couples will have to deal with this new tax. As well, it does not apply to principle residences under $500,000 held jointly or $250,000 for a single.  We suggest checking with your financial counselors to see if it is beneficial to sell before this new tax is put into place.  The reason it is called a Medicare Tax is that this money will be allocated to the Medicare Trust Fund that is part of the Social Security System.

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