There is a new tax that was part of the Obamacare health bill, that may affect large numbers of California home sellers effective on home sales effective 1/1/13. This is just another reason why no Realtor in their right mind should vote for president Obama's reelection!
I understand that the National Association of Realtors has to be nonpartisan, but I sure don't! We should all keep in mind, that starting in the first year that he was elected, the president introduced legislation to reduce the homeowners mortgage interest right-off.
Personally, if he is reelected. more pain will be put on homeowners! After talking with a CPA, and the IRS, I believe many may be overlooking one very important point that in my opinion, is critical to the discussion of this new 3.8% tax!
By the way, I'm including this fact in a new post I'm working on, tentatively entitled "Why No Realtor In Their Right Mind Should Vote For President Obama's Re-election!
To illustrate my point on the new 3.8% ObamaCare homeowners tax, let's say, a retired single person making about $50,000 in Social Security and retirement per year, considers it's time to move into an assisted care living facility, and therefore sells his California home that he originally purchased 30 years ago, at $50,000, for a sales price today, that nets him $500,000. If the sale closed before the end of 2012, he would've had to pay just the capital gains tax on the $250,000 that was over the $250k exclusion.
A number of Realtors, I've spoken to, mistakenly believe this will also be the case starting in 2013! Because this sellers income is just $50,000 a year, they think he would be exempt from the Obamacare home sales tax. But, the reality of the fine print shows that because he has a $200,000 net gain in the year of sale, this is added to his $50,000 a year pension, and now, at least in the year of sale, he is in that magical $250k adjusted income and above range where the new 3.8% tax kicks in.
Bottom line, this fictional seller will get hit with the new Obamacare tax bill! Do you like big government now? Now please understand that this is just my personal opinion, and naturally anyone concerned about this new tax should consult with a tax expert before making any sales decision.
My San Diego California real estate site provides full, unrestricted access to search the entire San Diego MLS . Also, if you want to see the actual current San Diego real estate sales activity and actual closed home prices, please visit San Diego California home sales
Bob Schwartz - Calif. real estate Lic.#00706331 brokerforyou