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Real Estate Executives, Including Erik Coffin, Comment on New Tax Rate’s Effect on Luxury Housing

Posted by Levine Communications Office on January 8, 2013

Gotham ForbesWritten by Morgan Brennan
Photo by John Schoenfeld

Luxury real estate surged in 2012. Nationally, the number of home sales priced at $1 million or more hit a four-year high in the first nine months of 2012, according to DataQuick MDA, and jumbo mortgages are up about 23%,according to the Wall Street Journal. Billionaires in particular plunked down record amounts for real estate.

Now taxes are rising for the wealthy Americans who could afford to buy and sell those million-dollar-plus homes. Under the new fiscal cliff deal, households earning upwards of $450,000 (or individuals earning $400,000)will pay a higher 39.6% rate (up from 35%) on income tax and a 20% capital gains tax (up from 15%). That’s in addition to a higher payroll tax and new taxes affiliated with ObamaCare including a 3.8% net investment income tax. With more money owed to Uncle Sam, how will this affect luxury housing?

Read what Erik Coffin of (Gotham Capital Management) and other real estate executives have to say at Forbes.com


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