Under the new Health Care Bill if you sell your house after 2012 you will pay a 3.8% sales tax on it. This is approximately $3,800 on a $100,000 home, or $3,800 per every Hundred Thousand dollars.
You say you weren't aware this was in the Obama Care bill? Well, you aren't alone. Till just recently there were more than a few members of Congress that weren't aware of it either.
"I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes,"
President Obama, September 12, 2008
Notice he doesn't say Property Tax in that speech. Because maybe he had a plan already. Or, most likely plans change and a trusted advisor thought this was a good way to raise money, from everyone. Who knows whose bright idea this was, a trusted advisor, an epiphany, a passing thought or maybe a random blog post seen while surfing the net.
It states Obama Care will impose a 3.8% Medicare tax on unearned income, on the sale of single family homes, townhouses, co-ops, condominiums, and even rental income. Ok so it's not a Sales Tax but a Medicare Tax having the money go to the Medicare Trust Fund part of the Social Security system. Plus if your annual gross income is under $200,000 you "should" still be ok. However, what happened to Commercial Property, why are they excluded? Looks to me like they could get more money that way and leave the family dwellers alone, even if they do make over $200K a year. The National Association of Realtors called this new Medicare tax on unearned income "Destructive" and "ill-advised" and warned it would hurt job creation and growth.
Usually I do not talk politics at all, but when I announced this on my show (Central Florida Real Estate Show ) a few months ago many people did not hear about this new bill. There are many people out there these days that just don't realize what they voted for.
Fear not, just because you did not hear about it, it may still not affect you. Once you look into the Bill you'll see that the tax is only on some real estate transactions and not all. It will be more likely to affect those that read Forbes but not those that read the Gazette.
Paul Antonelli
www.ThatShortSaleGuy.com
www.CentralFloridaRealEstateShow.com
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