Luxury home sales spiked at end of 2012

8:38 AM, Jan 8, 2013   |    comments
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(CNN) - Sales of luxury homes spiked in the final months of 2012 as high-end homeowners rushed to take advantage of lower tax rates before January 1.

Many sellers wanted to cash in on their homes before a widely expected capital gains tax hike that was part of the fiscal cliff budget deal.

High-income earners also wanted to close sales ahead of a Medicare surtax on investment income that was already slated to go into effect this year as part of health care reform.

All told, a high-earner would pay $88,000 less in taxes if they made a $1 million profit on their home in 2012 rather than in 2013.


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