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No. It is a tax on capital gains. You pay tax on the profit. If you bought a house for $90,000 and sold it for $100,000 then you would pay 3.8% of $10,000. $380 not $3800 -and only if total income exceeds $200,000 -and only if the gain is more than your $250,000 (single) or $500,000 (joint) capital gains exemption..
Gary, this is a bit off topic but how much of the raise in Social Security payments will find its way to the pockets of we old folks. Maybe you can find out if this story is just a story from Snopes. I sure hope not because that would tell me some things about Snopes that I think have showed up recently.
It seems that they are going to give us a small raise but that every penny of it will go to Medicare since that is withheld from SS checks. Is that true or not?
The issue, to me, is not the semantics of capital gains vs. income. The issue, to me, is why is a tax on real estate included in a healthcare bill?
That is the part of the OP that I was talking about. That "law" is full of new taxes that have no reason to be collected other than to help pay for the trillions the law will cost us. I don't see how this works out.
The issue, to me, is not the semantics of capital gains vs. income. The issue, to me, is why is a tax on real estate included in a healthcare bill?
Because over $1 trillion in new costs, and a promise to not make Obamacare add to the debt, mean you need MUCH MORE than $1 trillion in new and increased taxes. Government bureaucracy and oversight is not cheap, considering public workers get paid more than private workers, get significantly better benefits and have to contribute less for them, and have pensions far more generous than virtually any private sector workers will get.
Wonderful about the housing tax; I'm being taxed out of my home by local government, and now get to pay an additional huge chunk to the feds.
And here I thought I could come and be the first to link snopes... 1 hr too late though
I can't tell you how often I get emails claiming all sorts of ridiculous "truths" (about politics usually) where it was already been disproven but that email will be passed around by plenty of people (usually once a year) and none of them think to check snopes first...
And if someone made that much in capital gains on your home sale, what's the big deal?
The big deal is that this is a tax on homes which is totally new on the federal level. Not only that it is on any money made on the sale of real property. Also, what the hell is something like this doing in a health insurance law. New tax, which he said we wouldn't get and I don't blame him for not knowing the Senators hid it in there before he signed it. He got what he wanted and may well not have had any idea this was in there.
If I purchased a home in 1970 for $26,000, made payments and paying interest on those payments.
Here it is 2011, and I pay taxes on a home the city has valued at $400,000, today.
$26,000 in 1970 is equal to what with inflation added in.
Do I pay 3.8% on the $374,000, when I have to sell it to go into a nursing home?
you pay 3.8% of the $374,000 on top of capital gains taxes. In the end you'll owe something like $50,000 in taxes.
Now if its your primary home, there is a $250,000 exclusing for a single individual, and $500,000 for a married couple from the capital gains tax liability, so provided you lived in this home for 2 of those years, your tax liability would be the 3.8 of the $374K..
That is the part of the OP that I was talking about. That "law" is full of new taxes that have no reason to be collected other than to help pay for the trillions the law will cost us. I don't see how this works out.
This is one of those surprises that many don tknow about. Those who support the law, might have a different opinion when they start getting nailed by the costs of it.. They all think they are exempt...
Maybe they included it to get it passed without further ado.
Maybe that is exactly what happened and it shows the amount of corruption we are seeing coming from that Congress. They slipped this little deal in amongst all the other crap and nobody found it till long after it had "passed" and been signed.
It's a tax on income (capital gains) not a specific tax on real estate. If you sell an asset at a profit then it's income.
It is a tax on the sale of real property and that has never been around in federal law.
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