[svcw]

Oh, I see it’s no biggie because only the rich will pay - ((eye roll))

[SES1066]

Yes, under CURRENT LAW to be liable for this ObamaCare tax you have to exceed the safe harbor profit on the sale of your principal residence AND exceed the MAGI (Modified Adjusted Gross Income) for that year. What this idiot article ignores is that exceeding the safe harbor profit would automatically make your MAGI higher, but that is just my snark.

What is left unmentioned is that the sale of any other residence like vacation home or renal property IS automatically liable. So what happens to home price quotes in 2013? Any guesses?

And, as I indicate at the start, this is only current law, just wait for the inevitable adjustments as ObamaCare deficits grow. No revenue source will be safe from adjustment to increase government income.

[NonValueAdded]

That’s because the tax filer would do the calculation in 2014 for the 2013 tax year. Because it’s not a tax on a real estate sale but rather on a capital gain, it’s not calculated at the time of an asset sale, whether that asset is a house or something else. It’s calculated at the time the filer figures his or her tax.

Yes, calculated in the next year when filing out the tax returns, but subject to withholding and estimated tax payment requirements to avoid an underpayment of tax penalty. So you'd be a fool not to calculate the potential liability at the time of the sale and adjust your payments accordingly.

[BlessingsofLiberty]

It is a sur-tax that affects not only real estate but other transactions as well...

[ridesthemiles]

The most I ever made in one year of income was about $62,000. I am NOT a high income earner.

However, I don’t tend to buy & sell my properties every few years.

I held my first house for 29 years. When I sold, the market was somewhat down. Didn’t make any money, and the ‘calculated profit was not much at all.

I held my 2nd house for 16 years. I made a fair amount of profit on the sale of the 2nd house, but when all the calculations were done, I didn’t reach the magic number of $250,000 in profit, after which amount I could be taxed. So I owed nothing. IF I had been married, that ‘tax free’ amount would have been $500,000.

The amount of income you make isn’t the only criteria for whether this 3.8% tax will hit you. It is more closely tied to how long you hold your asset or home.

This tax isn’t connected to health care by the most energetic stretch.

Obama is just hitting home sellers with a tax without any explanation of where that money will be spent by Washington.

It is a killer blow to anyone trying to sell a house.