Law & Issues to Know: Federal Government

Federal legislation that impacts the business of real estate, including real estate marketing and real estate transactions.

Clarification on the 3.8 Percent Medicare Tax and Cap and Trade Legislation

Inaccurate information about how the American Clean Energy and Security Act (Cap and Trade) and Health Insurance Reform will affect the housing market and tax policy has been circulating among the real estate community. The confusion surrounds a new 3.8 Percent Tax imposed on some investment income. Please note that this tax WILL NOT be imposed on all real estate transactions, a common misconception. Rather, when the legislation becomes effective in 2013, it may impose a 3.8% tax on some (but not all) income from interest, dividends, rents (less expenses) and capital gains (less capital losses). The tax will fall only on individuals with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000 AGI.

For futher clarification on the impact of these two pieces of legislation, read the fact sheets below:

3.8 Percent Medicare Tax

The American Clean Energy and Security Act


Do-Not-Call, Do-Not-Fax and Do-Not-E-mail Laws

Calls made by REALTORS® to potential home buyers and sellers are subject to both the FTC and FCC telemarketing regulations. As a result, REALTORS® who make cold calls to consumers with whom they have not done business in the past must comply with all of the Do-Not-Call (DNC) rules. These rules include, but are not restricted to, requirements that those who are making consumer calls register as a telemarketer, check the DNC Registry before making calls to consumers and do not make calls to those consumers listed on the Registry or who have asked not be called by the caller in the past.

Realtors