Is It True? Will The Residential Real Estate Be Taxed 3.8% As Part Of condition Care Reform Bill?
Recently, a friend of mine mentioned that the new condition care reform bill was going to consist of a 3.8% sales tax on the sale of homes. I think I blurted out, "you've got to be kidding me!" Of course, I had to come home and investigate the details.
Health Care Reforms
Before I got to doing the research, I had all kinds of expletives circled around in my head. Thankfully, they stayed inside there. Other thoughts included; could our leaders in Washington certainly be that stupid? Hasn't the housing business already gone straight through enough trauma? Why would Washington want to kill the real estate company and therefore the economy?
My investigate did verify the new condition care reform bill does in fact have a provision to charge 3.8% sales tax on the sale of homes, but there is much more to it than that though. The 3.8% real estate sales tax only applies to particular tax payers production more than 0,000 or joint taxer payers production more than 0,000 And you wouldn't pay on the first 0,00 in profits for a particular tax payer or 0,000 in profits for a joint tax payer.
Whew...I was worried there for a minute. All the residential real estate I own has dropped 40-50% in value so no need to worry about profits. For many us real estate types, it will be many years (if ever) before we work off carry send losses from real estate activities of the last some years, so wage thresholds aren't an issue either.
My friend made it sound like it was a straight dollar for dollar 3.8% sales tax, which would have been the single stupidest thing Washington could have done since the beginning of the republic. I am never glad to hear Washington is tinkering with the store in which I earn my living, but I am glad to know that this 3.8% sales tax only applies to profits over 500k for joint filers. The 500K profit threshold pretty much eliminates most home sales unless the homes are selling for millions of dollars, which is a very small ration of homes.
I think the potential bigger issue may be market properties owners where structure that cost millions of dollars could certainly appreciate a small ration but increase in value 0K or 0K in net terms. The year you description the sale, your wage would be increased by the net profit from the sale of the building. For example, a retired couple on a fixed wage could sell a market property from a company they once owned. Even though the couple is on a relatively small fixed income, the sale of the building would trigger them into the 250K wage class when the profit of the sale exceeds 750K. Again, this might not happen that often, but one thing we know for sure...Washington put the provision in to raise revenues and that it will.
condition Care Reform Bill Levies 3.8% Tax on Sale of Residential Real Estate
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