Federal sales tax on home sales effective January 2013

Discussion in 'Politics, Religion, Social Issues' started by thewitt, Nov 21, 2012.

  1. thewitt macrumors 68020

    thewitt

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    #1
    One of the many new taxes levied by our lawmakers, the new 3.8% federal sales tax on home sales goes into effect January 2013

    Thanks Congress

    By the way, this was part of the HEATCH CARE LEGISLATION - the 1990 pages about which Nancy Pelosi so eloquently observed, "We have to pass the bill so you can find out what is in it."
     
  2. MorphingDragon macrumors 603

    MorphingDragon

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    #2

    Yea yea, we all know US Congress is dodgier than tap water in Somalia.

    Better boil that **** clean.
     
  3. mrkramer macrumors 603

    mrkramer

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    #3
    Should have been passed on its own and not with the healthcare bill, but overall I don't see a problem with it. It should help raise some needed revenue.
     
  4. thewitt thread starter macrumors 68020

    thewitt

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    #4
    No problem with it? Really? What about just a Federal Sales Tax on everything sold? No problem with it?

    We wouldn't need to additional revenue if we would quit spending like drunken sailors.

    Balance the budget as required by law. Quit spending what we don't have.
     
  5. quasinormal macrumors 6502a

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    #5
  6. AlaskaMoose macrumors 65816

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    #6
    Yes, there is a problem with it since this tax won't put a dent on spending. By the way, this is one of numerous other taxes coming up in 2013 and 2014.
     
  7. bradl macrumors 68040

    bradl

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    #7
    It would have been great if you had said this between 2003 and 2008. But you didn't, turned a blind eye to it, and were complacent to it back then.

    Such hypocrisy.

    BL.
     
  8. leenak macrumors 68020

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    #8
    Now I love my mortgage tax deductions but wouldn't it be better to reduce the tax deductions for mortgages or cap them than a federal tax?
     
  9. Thomas Veil macrumors 68020

    Thomas Veil

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    I can't think about that right now. I've gotta sell my house before the end of the year. :D
     
  10. topgunn macrumors 65816

    topgunn

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    #10
    http://www.factcheck.org/2010/04/a-38-percent-sales-tax-on-your-home/
     
  11. samiwas macrumors 65816

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    #11
    If this affects you personally, then I should send you my congratulations.
     
  12. balamw Moderator

    balamw

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    #12
  13. thewitt thread starter macrumors 68020

    thewitt

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    #13
    Yes it affects me personally, to the tune of $18,000
     
  14. balamw Moderator

    balamw

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    #14
    So you're selling a house in 2013? This tax only applies to sales, it's not an excise tax.

    Some numbers to put that in context for anyone unwilling to do the math themselves.

    $18K extra tax means you are expecting a profit of ~$475K to be taxed.

    Most people don't have that much equity in their house, so even if they were to sell the net profits (to be taxed) would be far less.

    For most people, this would also mean mean a profit of $725K (or $975K if married filing jointly) on the sale of their principal residence [most people don't have a second/vacation residence].

    B
     
  15. jnpy!$4g3cwk macrumors 65816

    jnpy!$4g3cwk

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    #15
    I haven't delved into this, but, is a capital gains tax, income tax, or sales tax? It sounds like a capital gains tax to me (sale price - purchase price). Are there exclusions?
     
  16. likemyorbs macrumors 68000

    likemyorbs

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    #16
    Wow you must be frickin loaded!
     
  17. MorphingDragon macrumors 603

    MorphingDragon

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    #17
    Thats why he moans so much. Lots of money is financial and social padding.
     
  18. samiwas macrumors 65816

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    #18
    You're selling a house for $475k in PROFIT?? As in, $475k more than you bought it for?? Or, since I think you're married, and the first $500k is exempt...$975k?? Then, count your ***** blessings. My house is worth nearly half of what it was 5 years ago. If I sold it today, I would lose approximately $80,000. I would give anything to have to give up $18k of my $475k in profit. Like I said, congratulations on your "loss". :rolleyes:
     
  19. Rodimus Prime macrumors G4

    Rodimus Prime

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  20. Jackintosh macrumors 6502a

    Jackintosh

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    #20
    As usual, distorted information from our conservative members. The people affected are wealthy and already making a hefty profit on their real estate transaction:

    http://www.leahy.senate.gov/issues/fact-vs-fiction

    "The Medicare tax is not a tax on all new home sales; it only applies to the profit that certain high income Americans make from the sale of their home.* The groups that may be affected by this provision are individuals with annual incomes over $200,000 and married couples with a joint income of over $250,000. The only home sellers who will be affected by this provision are those who fit the above description, and who sell their home for a profit of more than $250,000. The tax will not apply to the first $250,000 in profits for the individual selling his or her home or to the first $500,000 in profits for a married couple."

    "While undoubtedly some home sales will see a tax increase under this provision, the tax will affect only a small percentage of home sales.* A report released by the Tax Foundation on April 15, 2010 predicts that the new tax on investment income (including real estate) will affect only the top-earning 2 percent of American families."
     
  21. Rodimus Prime macrumors G4

    Rodimus Prime

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    #21
    which is why I am calling pretty much pure BS on he is saying. I smell a lot of made up facts.
     
  22. MadeTheSwitch macrumors 6502a

    MadeTheSwitch

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    #22
    Ah...where were these voices when the planes were headed off to Iraq all those years ago?
     
  23. AlaskaMoose macrumors 65816

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    #23
    There is no way that our Government can maintain the present level of borrowing and spending and just taxing those who make over $250,000 a year. It's simply impossible. In fact, our government can take all the money the rich have, and it is still not enough. It means that every one of us, rich and not so rich, will have to pay more taxes.
     
  24. thewitt thread starter macrumors 68020

    thewitt

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    #24
    You guys really don't have a clue do you.

    It's a new sales tax. It has nothing to do with profit or capital gain and nothing is exempted.
     
  25. Sydde macrumors 68020

    Sydde

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    #25
    This PDF seems to suggest that everybody is wrong here.

    The tax on cap gains, interest and dividends kicks in when AGI goes over $250K. Its application is to the lesser of the specific profit or the excess over $250K. So, for example, you otherwise make $210K and realize a $40K profit on a cap gain, such as a home sale, the tax will not kick in at all. If the profit on your home sale is $50K, the tax will apply to $10K (the excess). From a cursory reading, it appears that the gains taxes are levied per item, but I could be reading wrong.

    A few years back, I sold my dad's house. He bought it in 1965 for $12K or so and lived in it for about 40 years. The net profit, thus, was over $200K, though it was an estate issue, so the cap gains would not quite apply (his estate was below half a million).

    I could see that the profit on the sale of a long-held home or investment note could be most of the price. Length of time held somehow should be factored into a tax like this, but we still do need due revenue from the top end.
     

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