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Can this be true?

Cowpuncher

Well-known member
The following apparently is included in the Obama heealth care plan.

Quote:
Medicare tax increase. Requires single people earning $200,000 or more and couples earning $250,000 or more to pay an additional 0.9 percent in Medicare taxes.

Tax on Home Sales. Imposes a 3.8 percent tax on home sales and other real estate transactions. Middle-income people must pay the full tax even if they are “rich” for only one day – the day they sell their house and buy a new one.





I can't imagine a tax on a property bought and sold being taxed on the gross sales value rather than on the gain or loss. I guess I am glad we sold our ranch two years ago.
 

Steve

Well-known member
High-income households will be paying more into Medicare as a result of the new health reform law.

For starters, the Medicare payroll tax is going up for individuals making more than $200,000 in wages, and couples making more than $250,000.

Currently, the Medicare payroll tax is 2.9% on all wages -- with the worker and his employer each paying 1.45%.

Under the new law, starting in 2013, high-income individuals will pay another 0.9 percentage points -- so their share will total 2.35% of their wages.
source http://money.cnn.com/2010/03/22/news/economy/medicare_tax_increase/index.htm

In addition, high-income households would also be subject to a new 3.8% Medicare tax on investment income starting in 2013.
 

Steve

Well-known member
From factcheck
(This provision begins on page 33 of the reconciliation bill that was passed and signed into law.) And it does say the tax falls on "net gain … attributable to the disposition of property." That would include the sale of a home. But the bill also says the tax falls only on that portion of any gain that is "taken into account in computing taxable income" under the existing tax code.

they actually say it is false.. but on a technicality..

"IF" you have other deductions ($250,000), then it doesn't apply... to the first $250,000..

but it is in there and will effect your taxes...
 

Cowpuncher

Well-known member
I researched this a bit more and concluded that only the gain on a sale would be taxed if it was included in your taxable income. Basically, unless you have a huge, huge gain and don't replace your house, you would be taxed on the gain. The guy that wrote that article had a serving of crow.
 

Cowpuncher

Well-known member
Steve, It sure as hell is another tax increase, but surely won't be the last.

For all the money spent by the Federal, State and Local governments, there is one source.

You and I.

Even if they tax corporations, we will pay for it through higher prices.

Unfortunately, I believe that if we gave every penny we made to the government this year, they would be happy - until next year when they wanted more!!!
 

Faster horses

Well-known member
I was thinking about this and if you buy a house and lose money
on it, you cannot use that loss to offset income taxes. So, if they
don't allow you to do that, how is it fair for them to tax you on the gain?

:mad:
 

Lonecowboy

Well-known member
Faster horses said:
I was thinking about this and if you buy a house and lose money
on it, you cannot use that loss to offset income taxes. So, if they
don't allow you to do that, how is it fair for them to tax you on the gain?
:mad:

here's a thought:

you work and earn $, that money is taxed, you save up what is left over and buy some property, then pay taxes on property bought with after tax $, you work hard and improve that property,again with $ left over after taxes, so then your property taxes go up,
then when you sell that property or leave it to your heirs, more taxes.
we are paying taxes on taxes!
 

Kato

Well-known member
Can you actually write your house off against income tax? What portion? Interest? Principle? Boy, that's a difference between countries. I expect this could really fire up a real estate market.

In Canada, houses are right off the radar when it comes to taxes. You deduct nothing when you buy a house. However, if you live in it for at least a year, it becomes your "principle residence", and when you sell it, the money is yours. All of it. There is no capital gains on your home. No deduction, therefore no tax. For someone like my Dad, who bought his home in 1960 at 1960 prices, this is a substantial amount of money, and it's all his to keep. For many, it's a good chunk of their retirement income.

Something like a summer cottage would be subject to a gain when sold, but there is nothing deductible when you buy it. You just subtract the purchase plus buying costs from the sale price and pay a tax on a portion of the difference. But if you lose money, you can deduct the loss, and carry it forward and backward to apply to other years if you like.

On the other hand, we pay sales tax on just about everything, except groceries and children's clothes. So I guess rich people in our country pay more taxes too, because they simply have more money to spend. It turns out much like the extra Medicare tax you're talking about, but it's not so much in your face.
 

ranch hand

Well-known member
If it is your principle house you live in you cannot deduct anything, anytime. But if you buy a rental, the expenses are deductable.
 

Lonecowboy

Well-known member
ranch hand said:
If it is your principle house you live in you cannot deduct anything, anytime. But if you buy a rental, the expenses are deductable.

unless you have a home based business- then the portion that is relevant to the business is deductable as a business expense I believe.
 

Faster horses

Well-known member
On a home on a ranch I believe there is a tax deferral (for lack of
a better word) of up to $500,000 for a couple, and you can take the value of the house and not
pay taxes on that portion IF you buy another house of the same or
higher value. But you can't say your house is worth $300,000 and go
buy a house for $150,000.

Now if you just buy a house in town or on an acreage and lose money
on it when you sell it, you cannot use that loss against your income tax.
 
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