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Health Care Reform Hits Real Estate

Real Estate Agent with Golf and Water Real Estate Agency

I was just provided with some extract from an article, where a writer reported that the health care reform act effects real estate. It stated that after 2012, if you sell your home, you will be tax 3.8% of the sales price. Obviously, if this is true, that will have a great impact on the already devasted markets.

I am writing to start a discussion as to the validity of this information, specifically, if it is in the reform act, what is the National Association of Realtor's (NAR) position on this matter.


Comments (4)

Ron T. Weems Jr.
Weems Property Group | KW North Sound - Bothell, WA
Managing the details one home at a time.

Wow, this is news to me. I am going to see if I can find out also.

Nov 16, 2010 03:57 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA

NAR has supported various LIBERAL candidates to the point that their support is COUNTER productive to the real estate industry

This is another example of CLASS WARFARE by the Liberals and Democrats against  the "HAVES" who are homeowners!

Nov 16, 2010 03:58 AM
Dee Bundy
Fort Collins Realtor @ C3 Real Estate Solutions - Fort Collins, CO
Helping You Make Colorado "Home"

Carl - the Act imposes an “Unearned Income Medicare Contribution tax of 3.8% imposed on the lesser of income over $200,000 for individuals (and $250,000 for joint filers) or on investment income". This tax was contained in the reconciliation bill, HR 4872 (page 33 for those keeping track). Investment income , and more precisely, “net investment income,” is defined as the sum of “gross income from interest, dividends, annuities, royalties, and rents” not earned in the ordinary course of a trade or business and “net gain (to the extent taken into account in computing taxable income) attributable to the disposition of property,” but not property held in a trade or business.

In simpler terms, it means that a homeowner who sells a home for a profit of over $200,000 would have an income tax leveled on whatever their income was ABOVE $200,000.  So, this tax will only affect homeowners who have an annual salary of greater than $200,000 who sell a home for a PROFIT of over $200,000.

It is certainly something to consider but not something that we will deal with here in Fort Collins very often.

Nov 16, 2010 04:12 AM
Carl Flickinger
Golf and Water Real Estate Agency - Naples, FL
Broker Owner, GRI, CDPE

Thank you for that insightful information.

Nov 17, 2010 01:59 AM