Got This Message This A.M. From A Repug Friend - A 3.8% Sales Tax On Home Sales In The ACA Act......

[global1]

Does anyone know about this? Is this true or is this some Repug lies to get people to vote against Obama in 2012.?

Here's the message he sent me and a whole bunch of his friends:

EVERY HOMEOWNER NEEDS TO KNOW THIS!!!!!!!!!

The National Association of Realtors is all over this and working to get it repealed, -- before it takes effect.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. Now you tell me, just what the hell does real estate tax have to do with your healthcare?

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.

[Fawke Em]

1. Snopes is your friend

http://www.snopes.com/politics/taxes/realestate.asp

[dmallind]

2. Here ya go

http://www.snopes.com/politics/taxes/realestate.asp

[Poll_Blind]

3. I saw this too but I think it's bullshit. If it's not, it's super fucked up. If it's true then....

...it should be damned easy for someone to pull up where in the law it says that.

I think it's bullshit. That's just my hunch. Does anyone know?

PB

[Frustratedlady]

4. I find this hard to believe. For one...

the Pugs and Romney would have been all over it and would have milked it for all it's worth.

Secondly, why would home sales be brought into health care?

"Those people" are getting desperate.

[sinkingfeeling]

5. http://www.snopes.com/politics/taxes/realestate.asp

[NYC_SKP]

7. "Pants on Fire" Liar (politifact)

Explained here: http://www.politifact.com/truth-o-meter/article/2011/feb/01/3-8-percent-sales-tax-real-estate-health-care/

For the Future, when you get one of these do a Google.

I searched for the phrase, in quotes, "That's $3,800 on a $100,000 home, etc."

And top returns debunk this bullshit.

Also, I've never met a RW email that had a shred of truth.

Now for the TRUTH


The email is wrong!


The new health care act does have a surtax on unearned income for tax years starting after December 31, 2012. A 3.8% surtax will apply to NET Investment Income of higher income taxpayers. It is calculated at 3.8% of the lesser of (1) net investment income or (2) the excess of modified adjusted gross income over the threshold amount. The threshold amount is $250,000 married filing jointly or $200,000 for other filing statuses other than married filing separate. So, if your adjusted gross income isn't above the numbers above - it is a non-issue.


Net investment income for surtax purposes is interest, dividends, royalties, rents, gross income from from a business involving passive activities, and net gain from disposition of property (other than business property).


So, what is the truth about selling your personal residence and being taxed on it? Well, if you make over $500,000 Married filing jointly or $250,000 single on the sale of your personal residence, then yes the amount above those numbers could be subject to the surtax IF your AGI is over the threshold amount. For example, you sell your house and make $100,000 - then all of the gain is excluded so even if your AGI is over the threshold amounts you will not have any surtax on the sale of your house. It does not matter what you sale your house for....it matters only what your gain is. So, (1) calculate your gain (2) is it over $500,000 MFJ or $250,000 single? If not, all of it is excluded (as long as you have lived in the house as your primary residence two out of the past five years). If yes, then the excess above the amounts above is added into your income. (3) Now, with the excess added into your income, is your AGI above $250,000 MFJ or above $200,000 other statuses? If not, you still are not subject to the excess tax. If yes, than the amount of gain will be subject to the 3.8%.


The email circulating around has a grain of truth - but other than that grain of truth I can only assume is meant to scare people and to intentionally circulate false information.


If you or your friends receive this type of email or hear about this type of crap at the coffee house - point them to this blog.


Oh, by the way, if you are interested it is code section 1411 on the Internal Revenue Code that implements the 3.8% surtax.


Ted http://www.tedsmithcpa.com/page1120519.aspx

;;;

[The Magistrate]

8. Your Friend Is A Freaking Idiot, Sir

http://www.snopes.com/politics/taxes/realestate.asp

Tax is on investment income over $250,000 for a household, and applies in sale of a house only to the portion of sale price, if any, over a half million dollars.

[hobbit709]

9. Not this one again.

Any time some repuke says something the probability of what they're claiming is BS approaches unity.

[democrat_patriot]

10. Only if they make over $250K and only if this is INVESTMENT income - over a certain amount.

It's not a sales tax, and those perpetuating it as such are liars.

The very rich MAY pay 3.8% on the Capital Gains on their house sale if it is considered investment income.

[pinboy3niner]

11. Snopes: "Mixture of true and false information"

False: Health care legislation imposes a 3.8 % tax on all home sales.

True: Health care legislation imposes a 3.8% transaction tax on profits over the capital gains threshhold.

http://www.snopes.com/politics/taxes/realestate.asp

[jberryhill]

12. "The National Association of Realtors is all over this"

And nothing about it on their website at realtor.org.

[Historic NY]

13. from their own website...

Understand that this tax WILL NOT be imposed on all real estate transactions,
a common misconception. Rather, when the legislation becomes eff ective in 2013,
it may impose a 3.8% tax on some (but not all) income from interest, dividends,
rents (less expenses) and capital gains (less capital losses). Th e tax will fall only
on individuals with an adjusted gross income (AGI) above $200,000 and couples
fi ling a joint return with more than $250,000 AGI.

http://www.realtor.org/small_business_health_coverage.nsf/docfiles/government_affairs_invest_inc_tax_broch.pdf/$FILE/government_affairs_invest_inc_tax_broch.pdf

how they twist & spin.

[n2doc]

14. Essentially, any message like this is bogus

It is no different than getting a message stating "I am Prince Ackumabara of Nigeria, and I need your help..."

[SoutherDem]

15. The internet is amazing

Can you imagine what would have happened if Hitler had the internet?

A tax which would only apply to the rich is being spun into a tax which would affect the poor.