Wednesday, September 22, 2010

Obama Care Taxes Real Estate Transactions

Obama Care Taxes Real Estate Transactions!

George and Mable bought their house in 1979 for $70,000. Roll forward to January 2013 and assume the real estate market has recovered. George and Mable sell their home for $270,000 with a capital gain of $200,000.

Their joint income before the real estate sale is $60,000. With the capital gain their reported income is $260,000. They will have to pay a sales tax of 3.8% or $7,600 tax as part of the HEALTH CARE BILL.

Did I say the market had recovered in 2013? What impact will this new tax have on it?

Here is the law:

Taxes: Start date of a 0.9 percentage point increase in the Medicare payroll tax and a new 3.8

percent tax on unearned, non-active business income. The tax applies to individual taxpayers

earning more than $200,000 ($250,000 for taxpayers filing jointly). The Joint Committee on

Taxation estimates that this provision will cost Americans an additional $210 billion in taxes

over 10 years. Effective for tax years beginning after December 31, 2012. (Sec. 9015 and

H.R. 4872 Sec 1402)

This applies to interest, dividends, annuities, royalties and RENTS.

Check it out for yourself. Its buried on page 42 of this report:

And this link as well:

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