I recently received this email from a client:
"When does your home become part of your health care? After 2012!
Your vote counts big time in 2012, make sure you and all your friends and family know about this !
HOME SALES TAX
I thought you might find this interesting, -- maybe even SICKENING!
The National Association of Realtors is all over this and working to get it repealed, -- before it takes effect. But, I am very pleased we aren't the only ones who know about this ploy to steal billions from unsuspecting homeowners. How many realtors do you think will vote Democratic in 2012?
Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it? That's $3,800 on a $100,000 home, etc. When did this happen? It's in the health care bill, -- and it goes into effect in 2013. Why 2013? Could it be so that it doesn’t come to light until after the 2012 elections? So, this is ‘change you can believe in’?
Under the new health care bill all real estate transactions will be subject to a 3.8% sales tax.
If you sell a $400,000 home, there will be a $15,200 tax. This bill is set to screw the retiring generation, -- who often downsize their homes. Does this make your November, 2012 vote more important?
Oh, you weren't aware that this was in the ObamaCare bill? Guess what; you aren't alone! There are more than a few member s of Congress that weren't
aware of it either.
You can check this out for yourself at: http://www.gop.gov/blog/10/04/08/obamacare-flatlines-obamacare-taxes-home
I hope you forward this to every single person in your address book.
Voters need to know." (end of email)
There is no "Obamacare" tax on most home sales. The health law will impose a 3.8 percent tax on investment profits and other non-wage income starting in 2013. But that tax applies only to couples with adjusted gross income of $250,000 (or individuals with AGI of $200,000). About 95 percent of households make less than that, and will be exempt from the law no
In addition, couples who sell a personal residence can exclude the first $500,000 in profit from tax ($250,000 for singles). That would be profit from a home sale, not proceeds. So a couple that bought a house for $100,000 and sold it for $599,000 would owe no tax, even under the health law.
If that couple had AGI in excess of $250,000 and made a profit of $500,010, it would owe the new tax. On ten bucks. That would be an extra 38 cents.
While we may not agree with the law, we DO NOT need more misinformation passed around that will hurt future home sales (and we all know that these emails can be circulated for years).
We, as Realtors, need to correct these errors and educate or clients.