Equity Tax of 3.8% in the Health Care Bill

[Coronita]

[quote=AK]snopes.com declares this one “mostly false”:

http://www.snopes.com/politics/taxes/realestate.asp

The 3.8% applies to capital gains after the $500K capital gains threshold for selling a residence … I doubt that any Piggs find themselves in this enviable position … and if you do, congratulations, but you should be getting your financial advice from professionals 🙂

I’d be wary of anything that comes out of the OC Register’s editorial section. (And I used to work there.)[/quote]

It’s $500k for married couple, or $250k for individual. The $250k is entirely possible.

[SD Realtor]

So no it is not entirely false. It is entirely true as the original poster clearly said after a 250k/500k gain.

[SD Realtor]

So no it is not entirely false. It is entirely true as the original poster clearly said after a 250k/500k gain.

[SD Realtor]

So no it is not entirely false. It is entirely true as the original poster clearly said after a 250k/500k gain.

[SD Realtor]

So no it is not entirely false. It is entirely true as the original poster clearly said after a 250k/500k gain.

[SD Realtor]

So no it is not entirely false. It is entirely true as the original poster clearly said after a 250k/500k gain.

[Hobie]

from page 946:

‘‘SEC. 1411. IMPOSITION OF TAX.
‘‘(a) IN GENERAL.—Except as provided in subsection (e)—
‘‘(1) APPLICATION TO INDIVIDUALS.—In the case of an individual,
there is hereby imposed (in addition to any other tax
imposed by this subtitle) for each taxable year a tax equal to
3.8 percent of the lesser of—
‘‘(A) net investment income for such taxable year, or
‘‘(B) the excess (if any) of—
‘‘(i) the modified adjusted gross income for such
taxable year, over
‘‘(ii) the threshold amount.

Question for the tax pros – Suppose I sell a property and have a capital gain which is listed in my adjusted gross income. Under section B that capital gain is added to my normal income when determining the threshold amount. Then tax is applied to the amount above $250k. Is this correct?

If so, this is a sneaky way to base load the tax floor.

[Hobie]

from page 946:

‘‘SEC. 1411. IMPOSITION OF TAX.
‘‘(a) IN GENERAL.—Except as provided in subsection (e)—
‘‘(1) APPLICATION TO INDIVIDUALS.—In the case of an individual,
there is hereby imposed (in addition to any other tax
imposed by this subtitle) for each taxable year a tax equal to
3.8 percent of the lesser of—
‘‘(A) net investment income for such taxable year, or
‘‘(B) the excess (if any) of—
‘‘(i) the modified adjusted gross income for such
taxable year, over
‘‘(ii) the threshold amount.

Question for the tax pros – Suppose I sell a property and have a capital gain which is listed in my adjusted gross income. Under section B that capital gain is added to my normal income when determining the threshold amount. Then tax is applied to the amount above $250k. Is this correct?

If so, this is a sneaky way to base load the tax floor.

[Hobie]

from page 946:

‘‘SEC. 1411. IMPOSITION OF TAX.
‘‘(a) IN GENERAL.—Except as provided in subsection (e)—
‘‘(1) APPLICATION TO INDIVIDUALS.—In the case of an individual,
there is hereby imposed (in addition to any other tax
imposed by this subtitle) for each taxable year a tax equal to
3.8 percent of the lesser of—
‘‘(A) net investment income for such taxable year, or
‘‘(B) the excess (if any) of—
‘‘(i) the modified adjusted gross income for such
taxable year, over
‘‘(ii) the threshold amount.

Question for the tax pros – Suppose I sell a property and have a capital gain which is listed in my adjusted gross income. Under section B that capital gain is added to my normal income when determining the threshold amount. Then tax is applied to the amount above $250k. Is this correct?

If so, this is a sneaky way to base load the tax floor.

[Hobie]

from page 946:

‘‘SEC. 1411. IMPOSITION OF TAX.
‘‘(a) IN GENERAL.—Except as provided in subsection (e)—
‘‘(1) APPLICATION TO INDIVIDUALS.—In the case of an individual,
there is hereby imposed (in addition to any other tax
imposed by this subtitle) for each taxable year a tax equal to
3.8 percent of the lesser of—
‘‘(A) net investment income for such taxable year, or
‘‘(B) the excess (if any) of—
‘‘(i) the modified adjusted gross income for such
taxable year, over
‘‘(ii) the threshold amount.

Question for the tax pros – Suppose I sell a property and have a capital gain which is listed in my adjusted gross income. Under section B that capital gain is added to my normal income when determining the threshold amount. Then tax is applied to the amount above $250k. Is this correct?

If so, this is a sneaky way to base load the tax floor.

[Hobie]

from page 946:

‘‘SEC. 1411. IMPOSITION OF TAX.
‘‘(a) IN GENERAL.—Except as provided in subsection (e)—
‘‘(1) APPLICATION TO INDIVIDUALS.—In the case of an individual,
there is hereby imposed (in addition to any other tax
imposed by this subtitle) for each taxable year a tax equal to
3.8 percent of the lesser of—
‘‘(A) net investment income for such taxable year, or
‘‘(B) the excess (if any) of—
‘‘(i) the modified adjusted gross income for such
taxable year, over
‘‘(ii) the threshold amount.

Question for the tax pros – Suppose I sell a property and have a capital gain which is listed in my adjusted gross income. Under section B that capital gain is added to my normal income when determining the threshold amount. Then tax is applied to the amount above $250k. Is this correct?

If so, this is a sneaky way to base load the tax floor.

[briansd1]

I like it the old, pre 1997 way, when if you didn’t buy a replacement property, you’d have to pay capital gain on the full amount.

Back then, only knowledgeable people flipped houses and capital was better allocated to more productive industries. Housing, after it’s constructed is not productive.

[briansd1]

I like it the old, pre 1997 way, when if you didn’t buy a replacement property, you’d have to pay capital gain on the full amount.

Back then, only knowledgeable people flipped houses and capital was better allocated to more productive industries. Housing, after it’s constructed is not productive.

[briansd1]

I like it the old, pre 1997 way, when if you didn’t buy a replacement property, you’d have to pay capital gain on the full amount.

Back then, only knowledgeable people flipped houses and capital was better allocated to more productive industries. Housing, after it’s constructed is not productive.

[briansd1]

I like it the old, pre 1997 way, when if you didn’t buy a replacement property, you’d have to pay capital gain on the full amount.

Back then, only knowledgeable people flipped houses and capital was better allocated to more productive industries. Housing, after it’s constructed is not productive.

[Author]

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