Monday, September 9, 2013

WHAT A CROCK


I hope I didn’t come off like a drunken liberal Democrat at the
bar of a local restaurant last Friday night (while at some point
in my life I have been all three, I certainly was not any of these
last Friday), but I couldn’t help it.

I overheard a group sitting near me spewing the nonsense
that Obamacare includes a “federal sales tax on the sale of
your home”.  I can’t believe that this garbage is still
circulating.  I correctly pointed out to the group that it is a total
lie. 

What they were talking about is the 3.8% “surtax” on net
investment income for those who BO considers to be “wealthy”.

Beginning with tax year 2013, taxpayers with an AGI over
$200,000 for Single and Head of Household filers, $250,000
for joint filers and $125,000 for married couples filing
separately will pay an 3.8% surtax on net investment income. 
Net investment income is interest, dividends, net capital
gains, annuities, royalties, rents, and pass-through
income from passive S-corporations and partnerships less
related investment expense deductions from Schedule A. 

The $250,000 and $500,000 Section 121 exclusion on the
sale of a principal primary residence still applies.  So if the
gain from the sale of your home is less than $250,000
 or $500,000, as applicable, and you meet the Section 121
requirements, there is no federal income tax and no 3.8%
“surtax” on the gain, and certainly no federal “sales
tax” on the “sale price”. 

It is true that if the gain on the sale of a qualifying home for
a married couple who are “wealthy” is $600,000 the 3.8%
“surtax” could apply to $100,000. 

As I told the group on Friday - Obamacare is bad enough
as written that you don’ t need to make up lies about it!

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