Fri Nov 9, 2012, 04:59 PM
spedtr90 (650 posts)
Debunking e-mail about ACA real estate tax
This is my reply to an e-mail with wrong information about ACA real estate tax. The election may be over, but the misinformation doesn't go away unless it is countered with the truth. With Jan 1 coming soon this tax will be getting some attention again.
The e-mail message with the bad info is below the reply.
Trust God, but not the GOP’s blog.
Can’t think of anyone I know who would face this tax. Do you know a couple making half a million in income who live in a home they can sell for over $250,000 in profit (not price of the home)? If you said no, you don’t either.
The health care reform law includes a tax on all real estate sales.
Under the Affordable Care Act, only certain real estate transactions for certain individuals above a particular income level would be subject to a Medicare Tax.
Unfortunately, much of the information widely circulated about a tax on home sales and other real estate transactions inaccurately describes the purpose and the effect of this provision. The 3.8 percent Medicare tax is often misunderstood, and has frequently been described as a 3.8 percent “sales tax” on all real estate transactions, which is inaccurate.
The provision that establishes this tax can be found on page 946, Section 1402 of the Affordable Care Act. This tax is often referred to as the “Medicare tax,” because it was designed to raise funds for Medicare. The Medicare tax goes into effect after December 30, 2012.
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.
Take this quiz and you’ll find out the facts on the other myths: http://healthreform.kff.org/quizzes/health-reform-quiz.aspx
If you enjoy the calculations of real estate and how this works, check here: http://www.azcentral.com/business/articles/2012/08/02/20120802new-tax-home-sales-overblown-rumor.html
If you really want people to know the truth, forward this to everyone in your address book. And yes, VOTE!
In God We Trust
Home Sales Tax becomes effective Jan. 1, 2013
The National Association of Realtors is not pleased with this new tax and hopes this information is forwarded to every voter prior to the election in November.
It doesn’t matter which side of the political fence you sit on - it will affect ALL of us.
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 NationalAssociation 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 carebill, -- 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% salestax. If you sell a $400,000 home, there will be a $15,200 tax. This bill is set to hurtthe 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 Obama Health Care bill? Guess what; you aren't alone! There are more than a few members of Congress that weren't aware of it either. You can check this out for yourself at:
I hope you forward this to every single person in your address book.
VOTERS NEED TO KNOW.................... and VOTE!!!
4 replies, 1004 views
Debunking e-mail about ACA real estate tax (Original post)
|Ms. Toad||Nov 2012||#4|
|Ms. Toad||Nov 2012||#3|
Response to spedtr90 (Original post)
Fri Nov 9, 2012, 05:18 PM
Thinkingabout (18,616 posts)
2. I correctly answered 10 out of 10 questions on health reform.
Am I smart, by no means, I get my information from MSNBC and DU, now that makes me smart.
Response to Thinkingabout (Reply #2)
Fri Nov 9, 2012, 06:56 PM
Ms. Toad (13,275 posts)
4. Wow - the % correct on that quiz is frightening.
I've said all along that the biggest failure with regard to the ACA was the failure to invest in explaining the ACA to the public. So much misinformation and barely implemented at all before this election. The lack of knowledge about a law I fully expect to be very popular once it is completely implemented terrified me going into this election.
Response to spedtr90 (Original post)
Fri Nov 9, 2012, 06:48 PM
Ms. Toad (13,275 posts)
3. I spent a fair amout of time debunking that
(and other fictions about the ACA) a couple of months ago.
Got a new one yesterday - The IRS can reach into your bank account and grab your money if you don't by insurance or pay the penalty.
Reality: The health insurance penalty provision, unlike other tax law, has no teeth. The IRS can withhold your refund check, but there is no criminal liability and it cannot put a lien against your property (which is how it can get into your bank account to pay other tax debts.)