Wrong.Will You Ever Sell Your House?
Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it?
That's $3,800 on a $100,000 home etc.
No, it’s not in the the health care bill, or in any other federal law. Just thought you should know.When did this happen? It's in the health care bill. Just thought you should know.
The email goes on:
No, it’s not in the health care bill, and it’s not in any other federal law. This email is completely erroneous.SALES TAX TO GO INTO EFFECT 2013 (Part of HC Bill)
REAL ESTATE SALES TAX
So, this is "change you can believe in"?
Under the new health care bill - did you know that all real estate transactions will be subject to a 3.8% Sales Tax? The bulk of these new taxes don't kick in until 2013 If you sell your $400,000 home, there will be a $15,200 tax. This bill is set to screw the retiring generation who often downsize their homes. Does this stuff make your November and 2012 vote more important?
Oh, you weren't aware this was in the obamacare bill? Guess what, you aren't alone. There are more than a few members of Congress that aren't aware of it either
http://www.gop.gov/blog/10/04/08/obamac ... taxes-home
Why am I sending you this? The same reason I hope you forward this to every single person in your address book because you can make a difference
Under Internal Revenue Code as amended by the Health Care act, for tax years that begin after December 31, 2012, there is a 3.8% Medicare contribution tax on “qualified unearned income” of certain high-income individuals. The tax will be imposed on the LESSER of (A) the individual’s net investment income for the tax year, OR (B) the amount of modified adjusted gross income (a term of art) in excess of $200,000 for an individual (or $250,000 on a married joint return, or $125,000 if married filing separately).
Apparently there is nothing in the law that changes the general rule that up to $250,000 of gain on sale of most qualifying residences (up to $500,000 of gain if married filing jointly) is excluded from gross income. Thus the gain on the sale of a qualifying residence, for most people, would not be included in “net investment income” or “modified adjusted gross income.”
Thus, generally, the 3.8% tax could affect the sale of a qualifying residence IF, and only to the extent that, the seller had a gain in excess of $250,000 (or in excess of $500,000 if a joint return) – and even then, the 3.8% tax would apply only if the individual met the net investment income/modified adjusted gross income rule cited above.
That’s not going to apply to very many people.
For example, a married couple buys a house for $100,000 in 1995, lives in it for years, and sells the residence in year 2013 for a cool $600,000 (I don’t know what fabulous neighborhood this would be, but bear with me). Under the law, the whopping $500,000 gain isn’t even part of gross income, or investment income, or modified adjusted gross income. So, in that situation, even if the couple had, say, $249,999 in net investment income (from some other source) PLUS the $500,000 gain from the sale of the house, they would still not owe any of the 3.8% Medicare contribution tax – and for that matter no income tax on the $500,000 gain, either (the $249,999 investment income would, naturally, be subject to federal income tax).
The example in the email – of applying a supposed federal “sales tax” to the gross proceeds of a sale was, of course, wildly erroneous.