blessed3x Posted January 14, 2011 Share Posted January 14, 2011 This came through on our local homeschool email and I had to share it. We have thought of selling our house and moving when the market picked up, but his may change things..... -------- After receiving the email below, I checked it out on truthorfiction.com. It's true!!! Unbelievable! Somebody tell me what this has to do with HEALTH care yet it's on the Health Care Bill? HR-3590: Real estate sales will be taxed 3.8%- Truth! This is true, according to Congressman Mark Kirk of Illinois. Congressman Kirk released a statement on March 21, 2010 on HR-3590 <http://kirk.house.gov/index.php?option=com_content&task=view&id=3750&Itemid =98> saying that the health care bill will increase taxes "by imposing a new 3.8% tax on capital gains." The actual tax increases may be generated by the HR-4872 Reconciliation Act according a March 21, 2010 article <http://www.lifeandhealthinsurancenews.com/News/2010/2/Pages/House-OKs-HR-35 90.aspx> by Life and Health News Insurance News. This is also confirmed in a March 25, 2010 article <http://money.cnn.com/2010/03/22/news/economy/medicare_tax_increase/index.ht m> by CNNMoney.com that said, "couples making $500,000 in wages will pay an additional $2,250. If they made $1 million, they would pay an additional $6,750. In addition, high-income households would also be subject to a new 3.8% Medicare tax on investment income starting in 2013." Quote Link to comment Share on other sites More sharing options...
AuntieM Posted January 14, 2011 Share Posted January 14, 2011 Yes, I knew about this. It was made public before the health care act was approved by congress. I guess it just wasn't widely advertised. I *think* the state of Missouri has/is working on some proactive state legislation to protect its residents from this tax. I have not given attention to details and don't fully understand how such a thing would work. Did it say when the tax was to kick in? Many of the HC reform act measures aren't scheduled to kick in for a while, maybe 2012. Quote Link to comment Share on other sites More sharing options...
blessed3x Posted January 14, 2011 Author Share Posted January 14, 2011 From what I saw it will kick in in 2013. 2012 will be the last year to sell without having to pay the tax. Our housing market is not moving. I don't know if it will in 2012, but it may be worth it to try. I am guessing that many more houses will be on the market once this gets out though. Quote Link to comment Share on other sites More sharing options...
Tammyla Posted January 14, 2011 Share Posted January 14, 2011 None of the links worked for me. Did it say if the seller or buyer would be paying the tax? Quote Link to comment Share on other sites More sharing options...
DawnM Posted January 14, 2011 Share Posted January 14, 2011 UGH. We will already be losing money on the sale of our house.....add this in and we are sunk. I sure hope we can sell in 2012. Dawn Quote Link to comment Share on other sites More sharing options...
milovany Posted January 14, 2011 Share Posted January 14, 2011 (edited) None of the links worked for me. Did it say if the seller or buyer would be paying the tax? OP, if you type out text (like "click here") and then attach the link by clicking the small world icon with the chain links on it above the text box (when you're typing your message) and putting the long link in there instead, the link will work. Edited January 14, 2011 by milovaný Quote Link to comment Share on other sites More sharing options...
Kathleen in VA Posted January 14, 2011 Share Posted January 14, 2011 I really don't know much about taxes, but isn't a capital gains tax only imposed if you take out the money you made on your investment and use it for income? That doesn't sound quite right, but what I mean is if you take your profit and invest it in another home (primary residence), do you still have to pay a capital gains tax? Quote Link to comment Share on other sites More sharing options...
DawnM Posted January 14, 2011 Share Posted January 14, 2011 (edited) Hmmm....I can't open the links to figure out what exactly it says. They all say they can't open that page. Although a google search shows all of these written in the Spring of 2010, so this isn't something I haven't read before. I thought it was. I believe it is only for higher income families (over 200K or 250K) and only on the GAINS. We don't make that much. Dawn I really don't know much about taxes, but isn't a capital gains tax only imposed if you take out the money you made on your investment and use it for income? That doesn't sound quite right, but what I mean is if you take your profit and invest it in another home (primary residence), do you still have to pay a capital gains tax? Edited January 14, 2011 by DawnM Quote Link to comment Share on other sites More sharing options...
Caroline Posted January 14, 2011 Share Posted January 14, 2011 It looks to me, and please correct me if I am wrong, is that this is a SALES tax and not a capital gains tax. So, it makes no difference what you purchased your house for, you will still be taxes a full 3.8% on the SALE PRICE of your home. So, sell your home for $300,000? Pay $11,400 to the IRS. Dawn That is what this email makes it look like, but that is wrong. Kathleen is correct in her assessment. http://www.snopes.com/politics/taxes/realestate.asp Quote Link to comment Share on other sites More sharing options...
blessed3x Posted January 14, 2011 Author Share Posted January 14, 2011 http://www.snopes.com/politics/taxes/realestate.asp Thanks for this! It is clearer than the others, and sorry that the links did not work for everyone. Maybe it won't be so bad?? ;) Quote Link to comment Share on other sites More sharing options...
ChandlerMom Posted January 14, 2011 Share Posted January 14, 2011 Please get your facts straight before you post. An easy to understand discussion of this can be found at: http://www.suite101.com/content/is-the-38-capital-gains-tax-on-the-sale-of-a-house-true-a293718 This doesn't affect you unless you and your spouse make more than $250,000 a year AND you sell your home for over a half million PROFIT (more than you bought it for, not likely anytime soon) AND you don't use the proceeds to buy a new home. If you are that rich and make a killing in the RE market, then you will pay an extra 3.8% on the amount of PROFIT OVER $500,000. For the record, the independent CBO projects the Health Bill will REDUCE the deficit by over $143 billion in the first decade and over a TRILLION in the second. Personally, I don't like many of the details of the plan and would rather see a system where people can buy into medicare pricing (but pay the bills themselves; insurance often pays only 5-10% of the bill an uninsured person would receive because of "negotiated prices"; it's quite a racket). But let's debate the real issues with the plan, not some false claims by fear mongers in the media put out to (IMO) protect the extremely wealthy with their cadillac plans at the cost of the rest of us and especially senior citizens and the working poor. Quote Link to comment Share on other sites More sharing options...
Stacia Posted January 14, 2011 Share Posted January 14, 2011 Please get your facts straight before you post. ... But let's debate the real issues with the plan, not some false claims by fear mongers in the media put out to (IMO) protect the extremely wealthy with their cadillac plans :iagree: Quote Link to comment Share on other sites More sharing options...
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