Beginning January 1, 2013, ObamaCare imposes a 3.8% Medicare tax on unearned income, including the sale of single family homes, townhouses, co-ops, condominiums, and even rental income.
Definition: Unearned income – income derived from sources other than employment, such as interest and dividends from investments, or income from rental property. Also called unearned revenue. opposite of earned income.
“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
Obama has already passed a tax increase for millionaires and billionaires. All the while asking for more. The law is already passed in case you all missed it and the supreme court just refused to hear the case against Obama Care. So what does that mean for us Real Estate agents, Investors, Reitrement accounts, etc.??
Well you might want to think twice about a fix and flip property!
Consider a 3.8% hit off the top (gross) of all sales!
As an investor you might not want to sell that investment property unless you have to!
What do you think the value of homes will do with this across the board tax on economic activity?
How many more homes will be under water and go into foreclosure with another 3.8% in costs?
Is this going to lead to a prolonged stagnation of the economy?
Should we all become renters and abandon the American Dream?
As US citizens, Adults, Parents, Grand Parents, Real Estate Agents, Business owners, is this what you want and what you believe the American Dream is? Are you all ok with this?
We all have to vote for what we want and believe, or we will get what we get and don't throw a fit!!
Terry Lewis is COO of Notebuilders, Inc. a third party MLO for seller financing compliance under Dodd Frank and the SAFE Act. Notebuilders.com
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