Way back in September of 2010, I wrote a blog post about an email message that was circulating regarding an 3.8% real estate tax that was included as part of President Obama’s healthcare plan. At that time, the messages were aimed at overturning the Healthcare plan itself. Now that the Supreme Court has upheld the plan, it seems that the goal is to advise the general public that real estate agents won’t be voting for President Obama.
Just another political message designed as a scare tactic.
Because this message is so pervasive, I decided to address this subject again. I’ve received a similarly worded message no less than eight times in the past three days. At the bottom of this post I’ve attached the message thread I received yesterday from a very savvy client.
Sigh … this is just another not true email circulation that’s gaining ground again because of the upcoming election.
The facts? — There is not a 3.8% real estate tax for ALL real estate transactions starting in 2013. But there IS a 3.8% investment tax on profits for people who meet a high capital gains threshold.
In a nutshell, the 3.8% tax (called the Medicare tax — it has nothing to do with real estate), will be imposed on investment income only for individuals with a net income above $200,000 or couples with a joint net income of more than $250,000. Further, it’s then imposed only for transactions with a taxable gain above $250,000 per individual or $500,000 per couple. And then there are yet further conditions that control the taxable amount.-
The amount of taxable income generated by the sale = $100,000. 3.8% of $100,000 is $3,800
or
-
The amount by which their taxable income exceeds the $250,000 taxable income level= $10,000. 3.8% of $10,000 is $380
—– Original Message —–Sent: 7/16/2012 2:27:00 PMSubject: FW: Home Sales Tax-effective Jan. 1, 2013 You should read this regardless of political leaning so that you are aware of it.This came from a friend in CA; is this a true story? I trust you and believe you will know.
Marilyn
____________________________________________
I’ve talked to realtor friends and this is true! I’m not trying to bad mouth anyone, but it is something that will affect every single one of us who owns property.
Subject: Home Sales Tax-effective Jan. 1, 2013
Very important!!!!
———————————————————— When does your home become part of your health care? After 2012!
Your vote counts big time in 2012, make sure you and all your friends and family know about this !
HOME SALES TAX
I thought you might find this interesting, — maybe even SICKENING!
The National Association of Realtors is all over this and working to get it repealed, — before it takes effect. But, I am very pleased we aren’t the only ones who know about this ploy to steal billions from unsuspecting homeowners. How many realtors do you think will vote Democratic in 2012?
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. When did this happen? It’s in the health care bill, — and it goes into effect in 2013. Why 2013? Could it be so that it doesn’t come to light until after the 2012 elections? So, this is ‘change you can believe in’?
Under the new health care bill all real estate transactions will be subject to a 3.8% sales tax.
If you sell a $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 make your November, 2012 vote more important?
Oh, you weren’t aware that this was in the ObamaCare bill? Guess what; you aren’t alone! There are more than a few members of Congress that weren’t aware of it either.
You can check this out for yourself at:
http://www.gop.gov/blog/10/04/08/obamacare-flatlines-obamacare-taxes-home
I hope you forward this to every single person in your address book.
VOTERS NEED TO KNOW.Subject Home Sales Tax-effective Jan. 1, 2013
This was a great article to read because right now my brother in law and I are setting up an LLC with the intent on buying real estate and renting/leasing. I think that will be a good idea for us to do because otherwise you money is just sitting around losing value thanks to inflation. So is this a good time to invest in real estate?
I’m not rich and apparently now being without money is more noble than working hard to take care of your family, save for your future and do whatever you can to pay your taxes, stay off welfare, etc. But if that weren’t enough let’s charge them even more for the ‘privilege’ of being well to do. This is AMERICAN folks! When did we get our thinking (meaning the leftists) so screwed up that we have made good bad and bad good? You want to bring in some more revenue, than quit paying the politicians’ retirement benefits. That is what is breaking us! And they’ve put us in a class war to draw attention away from themselves! Yes, heavily taxing the ‘rich’ to ‘give to the poor’ (as if they’re really getting it!) certainly does a lot more than smack of socialism, it is the politically correct beginning of the end! Better learn Chinese or Spanish if you get the O back in office.
Hi Henry:
Yes, I suppose one might think it could smack of socialism. But we absolutely DO share in the loss and risks of wealthy investors. Just think of all of the homes that were lost, lowering the value of that investor’s share in whatever fund behind the mortgage. I think the American public absolutely does what’s “right” and shares in his loss.
Thanks so much for stopping by. I love a healthy debate!
It’s only “right” that one “share a small portion” of his or her wealth? Are the recipients of this largesse also willing to share in the risks that wealthy investors take? Suppose the home didn’t bring in a hunk of money, is the American public going to do what’s “right” and share in his loss?
My God. This smacks of socialism.