George W. Bush’s tax cuts implemented in 2003 are set to expire at the end of this year. President Obama has indicated that he will let them expire and not extend them.
One aspect of Bush’s plan is the long term capital gains tax which was lowered to 15%. At the end of this year this rate will increase to 20%.
What does this mean for land prices? Most likely sellers will recoup this tax increase by passing it along to buyers in the sales price. It is expected that land prices next year could be at least 5% more than they are currently.
This can be a tempting time for those who have been sitting on the sidelines waiting for something to happen. That “something” can very well be higher prices next year.
Wilderness Realty has an inventory of prime Maine land properties ready for sale. Call today and make an appointment for a showing, 207-947-7957.