Did you know that if you sell your rental property you might get hit with an ObamaCare TAX - from BIGMARK

Per telecom with California Association of Realtors Legal Hotline 7/2/2012

 

1.    The 3.8% ObamaCare tax on unearned/passive income will take effect January 1, 2013 if Democrats are elected.  If Republicans are elected, theymay change this.  Since the Supreme Court okayed it, there is no more lobbying/changes to be done prior to the election

 

2.    This 3.8% tax will be levied as follows:

·         Only for those making over $200,000 a year single earner or those making $250,000 a year married earners (High Income Earners)

 

·         This passive income would include Real Estate Sale Gains, Stock and Bond Sale Gains and other unearned/passive income gains

 

·         Principal Residence Sale – Capital gain exclusion of$250,000 single earner and $500,000 married earners.  So, if you do not make over 200,000 single or $250,000 married, you will not have this additional 3.8% tax levied on the sale of your home

 

·         Rental properties do not qualify for the capital gain exclusion, so the 3.8% tax on gains will apply if you hit the “High Income Earners” trigger.

 

***** You must always check with your tax accountant for up to date information******