Remember when we were telling you to "READ THE BILL!" ?? Time's up.

 

 

Todah! to Brother Jack for sending this information along...

I had no idea. 

 
  
Waiting until the housing market recovers to sell your house?  You might want to reconsider.  Under the new health care legislation, all real estate transactions will be subject to a 3.8 pct SALES TAX ... starting in 2013.

You weren't aware this was in Obamacare?  Well guess what, you're not alone.

 

If you sell your $400,000 home,

there will be a $15,200 tax.

Is this Hope & Change great or what?

 

Comments

[Tom Glennon]

Well, I had not planned on selling my home anyway, but a Federal Tax on home sales solidifies that decision. What does impact my family is my youngest daughters pacemaker/defibrillator. It will be due for a replacement at the same time the Federal Tax on these devices kicks in. Obama was right when he said that my taxes will not go up one dime. It will be significantly more than that.

[ly]

The 3.8% taxation requirement only applies to individuals who have an annual income of $200k or more, or couples who have an annual combined income of $250k or greater. Another important fact to note is that the 3.8% taxation will not apply to the entire sale of a person’s home. It only applies to any capital gains greater than $250k for individuals or $500k for couples. Therefore, if a single woman sold a $210k home, or a married couple with an annual income of $300k sold their $450k house, neither would face any additional taxes. While the 3.8% tax on the sale of homes will affect some people, it won’t be as bad as it seems. For example, if a couple who has an annual income over $250k sell their home (which they originally purchased for $350k) for $900k they’ve made a profit of $550k. This couple would have to pay an additional 3.8% tax on $50,000 (i.e., the $550k profit minus the $500k capital gain threshold), for a total of $1,900.

[Yael]

Iy, thank you for letting us know the details, but I still don't understand (1) what real estate transactions have to do with "healthcare," except that someone has to pay for it (apparently "the rich" at $250,000), (2) won't this hurt the real estate market even more? and (3) why is it tied to income? To put even more of a cap on how much money you can have? Is this the regulatory outcome of Obama's idea that "at some point... you've made enough money"? http://hotair.com/archives/2010/04/29/obama-i-do-think-at-a-certain-point-youve-made-enough-money/ And what happens to the incentive to earn more, when you benefit MORE from working, producing and earning LESS?

[Lori]

Yael, there are all kinds of things in the bill that have nothing to do with healthcare but have everything to do with paying for it. Case in point: mandating 1099 reporting for businesses on all payments over $600, not just services. So if they paid Staples for supplies over $600, that requires a 1099, and so on. This nightmare for small business will add substantially to their accounting costs for a supposed benefit of additional tax revenues from businesses that do not report all revenues.

[J Hass Group]

This nightmare for small business will add substantially to their accounting costs for a supposed benefit of additional tax revenues from businesses that do not report all revenues.