ObamaCare Flatlines: ObamaCare Taxes Home Sales - Clobbers Middle-Class Americans

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[NavyCanDo]

“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, including the sale of single family homes, townhouses, co-ops, condominiums, and even rental income.

In February 2010, 5.02 million homes were sold, according to the National Association of Realtors. On any given day, the sale of a house, townhome, condominium, co-op, or income from a rental property can push middle-income families over the $250,000 threshold and slam them 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.

[SunkenCiv]

Thanks NavyCanDo.

"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, including the sale of single family homes, townhouses, co-ops, condominiums, and even rental income. In February 2010, 5.02 million homes were sold, according to the National Association of Realtors. On any given day, the sale of a house, townhome, condominium, co-op, or income from a rental property can push middle-income families over the $250,000 threshold and slam them with a new tax they can't afford.

"So what? I won."

[heiss]

“Did you bother to actually read the bill?”

Yes. Did you actually understand any of the bill?
The bill section you point to has nothing to do with this issue. It is embarrassing to read the same BS again and again.

ObamaCare sucks and it add taxes, but it does not apply to any situation in which house sale gains (=profits) are less than $250k for single-filers or $500k for married filed jointly. Got it now?

[heiss]

“So if you have a capital gain of $260,000 on a home sale, you will have to pay a tax of about $10,000.”

No, you would pay taxes on the $10k gain (if single filer). The tax would be about $380.
No tax if married filing jointly.

It sucks and must be repealed, but please do not distribute these sorts of falsehoods. This is what liberals do. Conservatives should stick to facts and truth.

[ponygirl]

This should be interesting as companies EXPLAIN the INCREASED COSTS!

Yep. My company hasn't come out with next year's insurance package yet, but it's coming soon and I know it won't be pretty. They made big changes two years ago and the whining and bitching was astounding. Can't wait to see what they have in store for us this year. And I'll have plenty to say to the libs I work with who voted for the Communist in Chief.

[naturalborn]

Soon he will have us spying against each other, offering rewards to turn our friends in. The IRS will be used to compare utility bills to rents shown on Schedule E.

Isn’t there something in obamacare that says you have to send a 1099 to almost everyone? Landlords might be getting 1099’s from their tenants.

[Dubya-M-DeesWent2SyriaStupid!]

LOL to the

so what I won.

so true but funny and ya gotta laugh while you cry.

[Munz]

I think we are talking about the same thing, just different ways of seeing and expressing it.

Either way the government wants control over health care in the end. that is what is important. How it is perceived meanwhile is dependent on the seller and the audience that they are talking to in the meantime.

agree?

[nmh]

Agree!

:)

[nmh]

Are teh Obama folks there still HIGH on Obama’s “hope and change”?

Or are they finally getting it?

[ponygirl]

They are very quiet these days. If the subject comes up, one guy, who was a rabid Obist, leaves the room. Others just sigh and shake their heads as in, “Our whole political system is so corrupt.” They aren’t blaming Obama yet, they’re blaming The System.

[hinckley buzzard]

Reminds me of the definition of a nanosecond: The half -life of the conscience of a liberal politician.

[hinckley buzzard]

Of course, you are right, Snopes is bullshit. No serious person takes them seriously. The real issue is that this is not law, this is a regulatory matter, and can be changed at any time without notice by an anonymous bureaucrat.

There is no accountability in this fiasco of a bill.

[Marie]

I think this may be 3.8% on the profit. May be wrong.

Yeah, but what the hell is profit in their eyes?

Five years ago my husband and I bought property for $100,000. In two years we plan to sell. We will owe about $65,000.

So if we sell for $125,000 we're only making $25,000 actual profit. (It's more like we're breaking even after all the improvements.)

When we sell the house we'll pay off the mortgage and actually get $60,000 in our pockets. Will they try to count that $60,000 as *profit*?

If so, how does this give me the incentive to continue to make extra payments on my mortgage?

[PapaBear3625]

My favorite ObamaCare provision: SIXTEEN THOUSAND (16,000) NEW I.R.S. AGENTS!

You don't need 16,000 new IRS agents unless you anticipate massive opposition to paying taxes.

[Marie]

This is the most poorly worded document that I’ve ever read.

[SunkenCiv]

:’)

[RedMDer]

Sent this to DRUDGE.

“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, including the sale of single family homes, townhouses, co-ops, condominiums, and even rental income.

ObamaCare Flatlines: ObamaCare Taxes Home Sales - Clobbers Middle-Class Americans
http://www.gop.gov/blog/10/04/08/obamacare-flatlines-obamacare-taxes-home

Let’s see if he runs with it.

[ncalburt]

it done intentionally here quite often and usually its the same poster who like to seed doubt .

[dsutah]

Isn’t it something how little kids see these things? I was talking to my 9-year-old granddaughter the other day about the Depression era. I asked her if she’d learned anything about it. I told her that her “Nana” and “Papa” and her “Papa Ron” in heaven lived during the Depression when they were children. I told her that a lot of people didn’t have much food or a job.

She shocked the heck out of me when she replied: “kind of like how it is now, huh?”! I had no idea she knew anything about that! I told her, “yes, there are some elements of that happening now, or could shortly!”. I didn’t ask her where she learned that; but “Nana” might have told her. Or her one of her teachers said something about it. Her Mom or Dad might have mentioned it from what they learned in high school.

I do remember her Mom (my daughter)had an assignment once in where she had to interview an older relative (if available)or neighbor about the “Depression”, and how they lived through it. So she might have told her. I don’t know. But I sure was astonished that she would associate it with the situation now!

[thethirddegree]

MFJ is “married filing jointly” tax status. There is tax indeed in Obamacare, and it will apply also to the house sales, but only for the portion that is taxable. In other words, for married couple filing taxes jointly, the first $500k in gains is not subject to the new tax. For single filer, the limit is $250k. So, if you bought a $200k house and now sell it for $500k as a single filer, the new tax applies to the $50k portion of the profit. For a married filing jointly, the tax for $200k house is applied only if the price exceeds $700k

Thank you very much FRiend.Your post was very helpful.