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41 Comments on 2013 REAL ESTATE TAX
No.. this is NOT a sales tax as mentioned. It is a Capital Gains tax, there you are correct.
I've gotten a lot of emails from friends asking if I know about it. (For some unknown reasaon people look to me to sort things out and get it right for them, go figure??!!??!)
I give them pretty much the explanation here, I also tell them that work done to the house can adjust their cost basis. There is one one additional caveat. While this tax will affect only a few people today (in terms of house sales), the AMT (Alternative Minimum Tax) was written to cover only about 150 individuals in 1969, when it was written. BUT the AMT was never, and has never been indexed for inflation. Today 33 million people are caught in the AMT net.
Taxes once instituted go up and down but never ever get repealed. Even after the initial need and use of the revenue is long past.
Usually, when this tax is addressed, all the comments are along the line of, "Well, it'll be the other guy, not me so I don't care." But when did the government ever get a pinky finger iinto the cookie jar, that they didn't plunge in their whole hand?
Fair share? To be determined. Capital Gains is not new, it has never been part of Health Benefits before. Maybe WikiLeak can shed some light on the issue.
Too much taxing !!! I thought that's why we came to this great country !!! Unbelievable !!!
Denny & Denise -
Take a look at the Declaration of Independence. Look at the list of grievences against King George. Way too many of the issues that the Continental Congress of 1776 had problems with back then exist between the Federal Government and us, otherwise known as WE THE PEOPLE, today. 235 years and all we've done is trade one tyranny for another.
(Please note that I said FEDERAL GOVERNMENT... and I did not refer to any single man, current or former president. The Fed Gov can be construed to mean both houses of congress, the presidency, the supreme court, all the cabinet positions and related departments, the federal reserve, and pretty much anything that exists inside Washington DC that assumes its power from the mere existance of itself and not through the consent of the people nor through the rule of law as set within the bounds of the US Constitution and its Ammendments)
Thanks for the post. But, sadly, I think many people in the business are in the first group of taxpayers that you describe in your blog.
Thanks for the post Conrad. It will be very interesting to see if the changes kick in in Jan 2011.
Andrew Chong - you should listen to Jerry Murphy. He makes sense. Unlike those who keep saying that tax will hurt small business people. It won't touch over 99% of all Realtors.
Andrew Chong - you should listen to Jerry Murphy. He makes sense.
Unlike those who keep saying that tax will hurt small business people.
It won't touch over 99% of all Realtors.
We can't afford the cost of continued tax cuts to rick folks. Keep the rates for the middle class as
low as they are and put the $700,000,000,000. that will be saved by not cutting the tax for the
rich toward other programs instead of borrowing from the Chinese.
Great Post. Does the tax apply if the proceeds are rolled over into another home? What about investment properties?
Hopefully, the new Congress will turn some of these business-killing acts around.
While there are and always will be rich folks who got there because they are leeches - I can't hate the rich. They spend money and create jobs.
I would like to clarify my position about the tax increase. We don't have a revenue problem. We have a spending problem. 80% of all new employment occurs with companies that have less than 50 employees. If you want to raise the threshold to $1,000,000 instead of the $250,000 then I would agree with Jerry. Not at $250,000. Not with AMT.
Just to clarify what Michael said. The capital gains tax is currently 15%. It is supposed to go up to 20%. The Medicaid tax is on top of the capital gains tax. So we go from 15% to 23.8% if this "health plan" continues in its present form.
Randy you are correct. If you owned and lived in the home for two years then you can roll over the capital gains.
Gene investments properties are subject to the capital gain and Medicare tax. The only way around is to do a 1031 exchange.
Thanks for all the clarification - taxing changes are hard to keep up with!
Like Obama said, "Elections have consequences!", and we are all paying the price for a bad choice in 2008.
Jerry #11 - The IRS will gladly accept donations from any taxpayer that feels their taxes are too low. Because a handful of extremely rich people feel they are paying too little is no excuse to raise taxes on everyone else.
Conrad - Thanks for posting the info on the ADDITIONAL tax. We have a serious problem in our country and that is we simply spend too much. We would be much better going to a simple tax system such as a consumption tax or a flat tax, cure spending and encourage people to donate to projects that they feel are important such as education, homeless, etc.
Thanks Conrad for clairfying this. Sounded worse than your example showed but still sick of taxes, especially with another sector that is just poorly managed.
SOUNDS LIKE YOU RIGHT WINGERS HAVEN'T LEARNED FROM THE PAST...RONNIE THE REPUB SAVIOR LOWERED TAXES SO MUCH THAT THE GOVT HAD NOTHING TO RUN ON....SO WHAT DID HE DO....RAISED THEM UP AGAIN.
Well Larry (and Marilyn too)
A president can neither lower nor raise taxes. That is for Congress to do. A president can set an agenda. But that is neither here nor there.
Under your idea of higher taxes being necessary for the government to "have something to run on", why not raise everyone's taxes to 100%. Give all our money to the government and they can give to us what they believe we need. We can allow our Federal Government to become our "Great and Benevolent Caretaker".
Unfortunately, you're idea of how a society should be run has been tried already, and has failed.
But do not let that stop you from giving more than you currently give. So that the Government can have something to run on. The IRS 1040 only shows what you owe, it doesn't put a limit on what you can voluntarily pay. So feel free to raise your own tax rate as high as possible. According to Joe Biden, it's patriotic to do so. I'm sure Charlie Rangel, and Little Timmy Geithner feel the same way. Give till it hurts, after all, it is still a free country (at least for a short while longer).
As for me (a Right Winger) I'll will in mean time keep a check on my caps lock key and treat the government like an out of control child. I won't give them any more until they can prove that they can responsibly spend what they've already been given. Unfortunately there has yet to be some kind of government "program" or government bureaucracy that hasn't been proven to be inefficient or just plain rife with fraud.
It's not a taxation problem, it's a spending problem. The less the government spends the more the private sector can spend. It is the private sector that generates the revenue and risks the capital that necessitates job creation, not the government. I realize that I'm just a crazy Right Winger, but Keynsian economics doesn't work, trust me, look it up.
mike....you are typical, you go so far over the line from reasonable it is a joke. moderation...not doubling taxes etc...your ideas won't even be considered until you make sense and not a mockery.
if you think that way ...why not just have no taxes paid by anyone at all ever....would that be more to your liking? do you think that would work? about as good as your idea of doubling everything.
remember who was in charge for the entire 2000-2008....no jobs, no hope, no prospects.....your ilk thought tarp was a joke, 700 billion dollars to save auto manuf, wallstreet crooks and our entire economy....which so far is being reported to only end up being 25 billion, most is paid back....
without taxes where would that come from, police, fire, trains, roads, airports and anything else you guys label as socialism would not exist...want to live without them?
forget your right wing ideas of just say no ...we have seen where they have taken us through numerous administrations...the dems always come in and get it fixed and the repubs take over again and screw it up....then rinse and repeat
i used to vote repub....no more....
mike....you are typical, you go so far over the line from reasonable it is a joke. moderation...not doubling taxes etc...your ideas won't even be considered until you make sense and not a mockery.
if you think that way ...why not just have no taxes paid by anyone at all ever....would that be more to your liking? do you think that would work? about as good as your idea of doubling everything.
remember who was in charge for the entire 2000-2008....no jobs, no hope, no prospects.....your ilk thought tarp was a joke, 700 billion dollars to save auto manuf, wallstreet crooks and our entire economy....which so far is being reported to only end up being 25 billion, most is paid back....
without taxes where would that come from, police, fire, trains, roads, airports and anything else you guys label as socialism would not exist...want to live without them?
forget your right wing ideas of just say no ...we have seen where they have taken us through numerous administrations...the dems always come in and get it fixed and the repubs take over again and screw it up....then rinse and repeat
i used to vote repub....no more....