Of course that is no surprise to anyone with an IQ above room temperature but I make the point just to insure that any idiots reading this will get the point. Now, let's all remember that no one but the rich would have to pay any additional taxes...
Tax on Home Sales. Imposes a 3.8 percent tax on home sales and other real estate transactions. Middle-income people must pay the full tax even if they are “rich” for only one day – the day they sell their house and buy a new one.
Link
That is $11,400 on a $300,000 home. And if you think $300,000 is a home price paid only by the rich, well, you haven't bought a home lately.
Of course the seller will just add the tax into the price of the home, or at least try to. Worse, in a down market, it may well force the seller into just walking away and saying, "To hell with it! All I can do now is break even and I ain't gonna pay $11,400 out of my pocket!"
I wonder if the bank will have to pay the 3.8%. If not that's worse still because it allows the bank to undercut the market by that much. Just what we need in a down market.
Actions have consequences and tax increases always have them. A few years ago a tax on certain luxury items almost destroyed the boat building industry
On Twitter I am Lesabre1
Actually, the tax is on investors, not home owners:
ReplyDeleteIn his recent guest column regarding the impact of the Health Care Bill, Paul Guppy of the Washington Policy Center claimed that a 3.8% tax on all home sales was a part of the recently passed legislation. This is inaccurate and needs to be corrected. The truth about the bill is that if you sell your home for a profit above the Capitol Gains threshold of $250,000 per individual or $500,000 per couple then you would be required to pay the additional 3.8% tax on any gain realized over this threshold.
Most people who sell their homes will not be impacted by these new regulations. This is not a new tax on every seller, and that correction needs to be made. This tax is aimed at so called “high earners” if you do not fall into that category you will not pay any extra taxes upon the sale of your home.
Sara Orrange
Government Affairs Director
Spokane Association of REALTORS
Home Sales Tax Clarified
Well, assumning that Ms Orrange is not lying and/or parsing, then it is not as bad as it first looked.
ReplyDeleteIt will only hit those people in southern California, San Francisco and surroundung burbs, parts of Portland, Seattle, Phoneix and its burbs and Dallas and .....Chicago and Atlanta and Orlando and DC and Boston and Miami and Hartford and New York and.....
Just those areas full of middle class people who faithfully purchased a home years ago and paid it off, accepting the inflated rates based on the climbing market value.... and now want to sell it.
Got News For You Obama Lover. $800,000 isn't all out of line for many homes in middle class burbs across the fruited plain. Assuming a purchase price/cost basis of around $100,000 then the tax is ONLY $7600. The $7600 to be collected when the house is sold, which most peple do AT THE TIME OF THEIR RETIREMENT when their income is normally being reduced. $7600 goes a long way towards paying moving costs into the retirement home.
Instead it will be used to pay for Obama's base's insurance. Well, fair is fair. At least it isn't coming out of Obamie's stash.