<Steve> 82 Report post Posted July 30, 2012 The 3.8% sales tax when you sell your home is set to take effect in 2013? It's a part of the health care law. I do know that you need to have $250K Adjusted Gross Income and profit from the sale at $500K or more. I am also assuming that this New tax is added on top of the capital gains tax. I'm just trying to confirm and get a bit more info. Thank you! Share this post Link to post Share on other sites
ErikOk 10 Report post Posted July 30, 2012 Oh come on now, we all need to share the wealth "They had to pass it before they could find out what's in it" (and yes, you're right, it's in it) Share this post Link to post Share on other sites
MichaelC 160 Report post Posted July 30, 2012 Wait a minute! A new tax on the sale of your house is in the health care bill?? I don't get the connection. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted July 30, 2012 Oh come on now, we all need to share the wealth "They had to pass it before they could find out what's in it" (and yes, you're right, it's in it)Wait a minute! A new tax on the sale of your house is in the health care bill?? I don't get the connection. LOL, well obviously not many see the connection. There is a lot of different info. out there about it. I've heard it was an income tax, which would be the first time income tax was required from non-wage income. I was asked about it and thought maybe the Tax-Man may have some insight to the crazyness. If he is still out there? Share this post Link to post Share on other sites
bwalston 1 Report post Posted August 4, 2012 Actually, it's NOT a sales tax...and it doesn't apply only to when you sell your home. Being the political junkie and tax geek that I am, I did a pretty thorough reading of HR 4872 Health Care and Education Reconciliation Act of 2010 when it was signed into law. I’d like to offer the following comments for consideration. : Effective January 1, 2013 there is a new 3.8% tax: It is NOT a tax on all real estate transactions.: It IS a Medicare tax on “NET INVESTMENT INCOME” over a certain threshold.: Many people will not have to pay this tax. Who does this affect? The best answer, I think, comes from the law itself. The Act says: (a) IN GENERAL.—Except as provided in subsection (e)—(1) APPLICATION TO INDIVIDUALS.—In the case of an individual,there is hereby imposed (in addition to any other taximposed by this subtitle) for each taxable year a tax equalto 3.8 percent of the lesser of—(A) net investment income for such taxable year, or( the excess (if any) of—(i) the modified adjusted gross income for suchtaxable year, over(ii) the threshold amount.( THRESHOLD AMOUNT.—For purposes of this chapter, theterm ‘threshold amount’ means—1) in the case of a taxpayer making a joint return undersection 6013 or a surviving spouse (as defined in section 2(a)),$250,000,(2) in the case of a married taxpayer (as defined in section7703) filing a separate return, 1⁄2 of the dollar amount determinedunder paragraph (1), and(3) in any other case, $200,000.What this seems to mean: : The tax would not be imposed until the threshold of $200K for singles or $250K for married filing jointly is exceeded. : The 3.8% would be imposed on the LESSER of the net investment income OR the modified AGI in excess of the threshold. : If you have NO ‘net investment income’ you will not pay the surtax even if your income exceeds the threshold. Net investment income, as far as I can determine, includes capital gains, rents, dividends and interest income. It also comes from some investments in active businesses IF the investor is not an active participant in the business. The portion of investment income that is subject both to income tax and the new Medicare tax is the amount of income derived from these sources, reduced by any expenses associated with earning that income. (Hence the term “net” investment income.) This is definitely a convoluted piece of legislation, and you should certainly run this stuff by your own tax pro. Only he or she can definitively advise you about your individual tax situation. Just my .02… Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 4, 2012 This is definitely a convoluted piece of legislation. . . Is there any other type? 1 Share this post Link to post Share on other sites
<Steve> 82 Report post Posted August 4, 2012 This is definitely a convoluted piece of legislation. . . Is there any other type?MC, it's harder for us to be scammed if it was simple and straight forward. Thanks Bill, that makes it little more clear being net investment income. Share this post Link to post Share on other sites
bwalston 1 Report post Posted August 5, 2012 This is definitely a convoluted piece of legislation. . . Is there any other type? LOL - You DO make a good point Share this post Link to post Share on other sites
pilot76180 51 Report post Posted August 6, 2012 I'm still not sure why there is socialized medicine coverage...I pay $130 a month for my premiums as a self employed guy...I don't need NObama or anyone else paying for my premiums....Oh wait.....VOTES and CONTROL....That's why..... 2 Share this post Link to post Share on other sites
bwalston 1 Report post Posted August 6, 2012 I'm still not sure why there is socialized medicine coverage...I pay $130 a month for my premiums as a self employed guy...I don't need NObama or anyone else paying for my premiums....Oh wait.....VOTES and CONTROL....That's why..... EXACTLY Share this post Link to post Share on other sites