In Obamaland, those are intended results, not side-effects.
Posted on 07/14/2012 4:09:03 PM PDT by YankeeReb
“I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes,”
President Obama, September 12, 2008
Beginning January 1, 2013, ObamaCare imposes a 3.8% Medicare tax on unearned income of “high-income” taxpayers which could apply to proceeds from the sale of single family homes, townhouses, co-ops, condominiums, and even rental income, depending on your individual circumstances and any capital gains tax exclusions. Importantly, the “high income” thresholds are not indexed for inflation so will reach increasing numbers of middle-class taxpayers over time.
In February 2010, 5.02 million homes were sold, according to the National Association of Realtors (NAR). On any given day, the sale of a house, townhome, condominium, co-op, or income from a rental property could slam middle-income families with a new tax they can’t afford.
This new ObamaCare tax is the first time the government will apply a 3.8 percent tax on unearned income. This new tax on home sales and unearned income and other Medicare taxes raise taxes more than $210 billion to pay for ObamaCare. The National Association of Realtors called this new Medicare tax on unearned income “destructive” and “ill-advised” and warned it would hurt job creation.
(Excerpt) Read more at gop.gov ...
It's something that renters need to know too....the middle to lower middle class that aren't poor enough to get section-8
When the landlords expenses go up 3.8% - guess what? - rent needs to go up at least 3.8%
The whole concept of “unearned income” gets me every time I hear it. Pure marxism.
The whole concept of “unearned income” gets me every time I hear it. Pure marxism.
If my home went up in value, it is not because the home is more valuable or more desirable, it is because the dollars used to buy the home have LESS value today then they did when I bought the place.
As a matter of fact, in terms of ounces of gold, my home has substantially LOST value in the last 18 years.
Don’t tax me on inflation, bro!
In Obamaland, those are intended results, not side-effects.
Obama don’t care.
On the sale of a principal residence, this additional 3.8 percent Medicare tax applies only after the application of the exclusion of gain available under Section 121. If a taxpayer meets the requirements, up to $250,000 of gain is still excluded from gross income, and it is $500,000 for a married couple filing a joint return. In addition, the 3.8 percent additional Medicare tax will not apply to most people. It applies only to people with higher incomes compared to most people. It is a tax increase on the investment income of upper income people and will hurt the economy. However, it will NOT have a direct effect on most people. There are wild rumors going around the Internet that this additional tax is a sales tax on the sale of homes. This is absolutely NOT true.
What about a deduction for loss of purchasing power due to the government cause inflation??? Just because your home ‘increases’ in price does not mean you have increased your net purchasing power. In fact if the house increase was less then inflation you have lost purchasing power and owe taxes!
I don’t know why no one points out that one of the first laws Obama signed was the expansion of SCHIP which more than doubled cigarette taxes. I would hazard to guess that most of the burden fell on persons making less than $200,000. Smokers just aren’t a sympathetic group.
I don’t know why no one points out that one of the first laws Obama signed was the expansion of SCHIP which more than doubled cigarette taxes. I would hazard to guess that most of the burden fell on persons making less than $200,000. Smokers just aren’t a sympathetic group.
Thank you for the professional clarification
Spouting untruths weakens the much greater effort before this Nation
It applies only to people with higher incomes compared to most people. It is a tax increase on the investment income of upper income people and will hurt the economy.
Then you say...
However, it will NOT have a direct effect on most people.
Excuse me, but that is a tax on people. It doesn't matter which people. Then you say...
There are wild rumors going around the Internet that this additional tax is a sales tax on the sale of homes. This is absolutely NOT true.
According to section 1411 of the PPAHC act it is. Whether unearned income or not, you get nailed if, for the purposes of this post, you are an investor. Whether it's a medicare tax or not, you are paying it. "Most people" is totally irrelevant.
You normally get your stuff right, but I don't think so here. Maybe I'm missing your point.
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See post 13, and any rebuttal that follows.
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How would section 1411 affect the REIT 1120 with gains from real estate transaction regarding 0bamacare/tax.
There are other entities that would be affected, but let's just stick with these examples.
I look forward to your post.
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