Hidden Real Estate Sales tax in Health care bill – Surprise!

Canada freepress ^ | September 14, 2010 | By Dr. Laurie Roth

[d2bernhard]

In regard to the real estate tax, I believed the language has been misinterpreted and subsequent arithmetic wildly incorrect. This accounting might be if interest to all the posters here who make more than $250 per year. For the rest of us this is not applicable.

http://www.factcheck.org/2010/04/a-38-percent-sales-tax-on-your-home/

[avacado]

You're right that a lot of incorrect information is going about this sales tax. But here's a question: do they consider the profit to be part of your income? And the income levels are not indexed to inflation so in about 10 years or so someone making $200K will be much more common.

[a real Sheila]

it is my understanding that it is on profit amounts over $250K for individuals, $500K for married couples.

[Eva]

WA state already has a tax on the sale of real estate. They call it an excise tax. It is usually assessed on the seller of the home, unless the seller is moving out of state and then they assess the tax on the buyer. You usually don’t get a chance to contest it because you don’t even know about it before closing, unless you are up on real estate dealings.

[Getreal3]

Just in case the facts actually matter to anybody, this posting is untrue and has been known to be untrue for many months. There is no tax on the sale price of a home. There is a tax on capital gains in excess of $500,000 (for a couple) if the couple has a total income of over $250,000. So, if a couple with income over $250,000 sold a house for 1 million dollars, if they had bought the house for more than $500,000, there would be no tax. If they bought the house for $400,000, then they would be taxed on $100,000 not on 1 million. So this “poor family” who earns over $250,000 and just made $600,000 on the sale of the house would be required to pay $3500. Should we be running a benefit for them to help them out of this jam??