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If You Plan On Selling Your Home |
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Posted by Train Dude on Mon Feb 27 02:04:01 2012 Do it in 2012. Obamacare adds an additional 3.8% tax on the excess Capital Gains on the sale of your house beginning in 2013. |
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| (913434) | |
Re: If You Plan On Selling Your Home |
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Posted by SLRT on Mon Feb 27 05:21:43 2012, in response to If You Plan On Selling Your Home, posted by Train Dude on Mon Feb 27 02:04:01 2012. And what other surprises will we see in 2013? |
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Re: If You Plan On Selling Your Home |
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Posted by Dave on Mon Feb 27 05:42:36 2012, in response to If You Plan On Selling Your Home, posted by Train Dude on Mon Feb 27 02:04:01 2012. How many people are going to be taxed? What's taxed is the gain above a $500,000 profit, on a married couple with an AGI of more than $250,000 ($250k profit and $125k AGI for an unmarried taxpayer). How many home sales will have that much gain? Sounds like something that makes for good copy but affects relatively few sellers. |
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Re: If You Plan On Selling Your Home |
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Posted by SelkirkTMO on Mon Feb 27 05:43:37 2012, in response to Re: If You Plan On Selling Your Home, posted by SLRT on Mon Feb 27 05:21:43 2012. Looks like somebody ELSE didn't read it. :) |
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Re: If You Plan On Selling Your Home |
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Posted by SelkirkTMO on Mon Feb 27 05:44:44 2012, in response to Re: If You Plan On Selling Your Home, posted by Dave on Mon Feb 27 05:42:36 2012. Some folks are running out of "BS of the day" ... at least I do what I do strictly for the sake of trolling and some chuckles. It appears he didn't read it and flipped. :) |
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Re: If You Plan On Selling Your Home |
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Posted by Fred G on Mon Feb 27 06:08:11 2012, in response to If You Plan On Selling Your Home, posted by Train Dude on Mon Feb 27 02:04:01 2012. It doesn't affect you or me unless you're going to make $500k profit on your house sale.After reading what you posted this looks like a good headline but not much story. your pal, Fred |
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Re: If You Plan On Selling Your Home |
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Posted by SelkirkTMO on Mon Feb 27 06:09:24 2012, in response to Re: If You Plan On Selling Your Home, posted by Fred G on Mon Feb 27 06:08:11 2012. Another day, more bullshit ... THIW. :) |
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Re: If You Plan On Selling Your Home |
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Posted by Jeff Rosen on Mon Feb 27 06:15:37 2012, in response to Re: If You Plan On Selling Your Home, posted by Fred G on Mon Feb 27 06:08:11 2012. I'm not sure if I read this right. If I make a $550,000 profit on my house, I only pay the 3.8% on 50,000???? Not that I think it's right but it is better. |
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| (913445) | |
Re: If You Plan On Selling Your Home |
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Posted by SelkirkTMO on Mon Feb 27 06:17:39 2012, in response to Re: If You Plan On Selling Your Home, posted by Jeff Rosen on Mon Feb 27 06:15:37 2012. Yep ... correct answer ... but if it's your FIRST house, there's an exclusion there too. It's when you already took that exclusion that you have to pay on the profits thereafter. If you never took that exclusion and you sell, you pay nothing there ... unless the republicans take THAT away too. |
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| (913447) | |
Re: If You Plan On Selling Your Home |
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Posted by Jeff Rosen on Mon Feb 27 06:18:28 2012, in response to Re: If You Plan On Selling Your Home, posted by Dave on Mon Feb 27 05:42:36 2012. Bullshit. It mostly affects the elderly. Many houses on Long Island and NYC are valued above $500,000 yet much of the elderly paid about $30,000 to $50,000 for their houses. |
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| (913464) | |
Re: If You Plan On Selling Your Home |
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Posted by GP38/R42 Chris on Mon Feb 27 08:02:07 2012, in response to Re: If You Plan On Selling Your Home, posted by Dave on Mon Feb 27 05:42:36 2012. FALSE. Especially in the NYC area. It hugely effects people that have owned their homes for a long time. A couple in Levittown for example, that bought in the 50's and now want to move to Florida. They probably paid 20 or 30,000 for their home, and worth in the 500,000's or 600,000's is far from unusual on Long Island, or even in Queens. In fact it's quite common. |
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| (913465) | |
Re: If You Plan On Selling Your Home |
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Posted by GP38/R42 Chris on Mon Feb 27 08:04:38 2012, in response to Re: If You Plan On Selling Your Home, posted by SelkirkTMO on Mon Feb 27 05:44:44 2012. It should matter by area. $500,000 in Nassau or Queens for example is far from unusual. That's even on the lower end as far as prices go, even in "not" rich areas. Many elderly bought their homes for like $20,000 and now it's worth way over $600,000. If they retire and want to "move to Florida" or somewhere, this most definitely effects them. It matters in places like Long Island and NYC where the prices are high, even in a not so great market. |
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| (913466) | |
Re: If You Plan On Selling Your Home |
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Posted by GP38/R42 Chris on Mon Feb 27 08:05:58 2012, in response to Re: If You Plan On Selling Your Home, posted by SLRT on Mon Feb 27 05:21:43 2012. All the bombs were set to go off after the election so people wouldn't notice the damage the Democrats caused in their 2 year liberal disneyland. |
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Re: If You Plan On Selling Your Home |
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Posted by clearaspect on Mon Feb 27 08:14:52 2012, in response to Re: If You Plan On Selling Your Home, posted by Jeff Rosen on Mon Feb 27 06:18:28 2012. The elderly are going to sell their home????Yeah you're statement is bullshit.... |
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Re: If You Plan On Selling Your Home |
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Posted by GP38/R42 Chris on Mon Feb 27 08:23:36 2012, in response to Re: If You Plan On Selling Your Home, posted by clearaspect on Mon Feb 27 08:14:52 2012. ??????????????????????Elderly don't sell their homes, retire, and move to places like Florida? LOL. |
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| (913477) | |
Re: If You Plan On Selling Your Home |
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Posted by orange blossom special on Mon Feb 27 08:38:53 2012, in response to Re: If You Plan On Selling Your Home, posted by Fred G on Mon Feb 27 06:08:11 2012. Good point. most of those houses are now devalued to under 250,000. Sounds like Barry is trying to score points with the condom throwing OWS'ers for a scenario he already destroyed. |
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| (913479) | |
Re: If You Plan On Selling Your Home |
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Posted by Fred G on Mon Feb 27 08:44:04 2012, in response to Re: If You Plan On Selling Your Home, posted by orange blossom special on Mon Feb 27 08:38:53 2012. So you think this tax is a new idea that came after OWS showed up?your pal, Fred |
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Re: If You Plan On Selling Your Home |
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Posted by Dave on Mon Feb 27 09:09:36 2012, in response to Re: If You Plan On Selling Your Home, posted by GP38/R42 Chris on Mon Feb 27 08:04:38 2012. Chris, it's the gain that is taxed, not the selling price of the house. If they bought the house for $1M and sold it for $1.2M, there would be no tax on the gain. |
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Re: If You Plan On Selling Your Home |
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Posted by Dave on Mon Feb 27 09:11:18 2012, in response to Re: If You Plan On Selling Your Home, posted by Jeff Rosen on Mon Feb 27 06:18:28 2012. Sarge, in your example there would be no gain (if it was an elderly couple). The first $500,000 in gain is not taxed. A house sold for $550,000 with a basis of $50,000 in not taxed. |
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Re: If You Plan On Selling Your Home |
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Posted by AlM on Mon Feb 27 09:17:09 2012, in response to Re: If You Plan On Selling Your Home, posted by Dave on Mon Feb 27 09:09:36 2012. He's talking about people who bought their houses many decades ago. |
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Re: If You Plan On Selling Your Home |
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Posted by Dave on Mon Feb 27 09:41:19 2012, in response to Re: If You Plan On Selling Your Home, posted by AlM on Mon Feb 27 09:17:09 2012. So? It all comes down to their gains. There can't be that many houses on LI that have gained more than $500,000 in value since purchased. |
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| (913500) | |
Re: If You Plan On Selling Your Home |
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Posted by GP38/R42 Chris on Mon Feb 27 09:55:30 2012, in response to Re: If You Plan On Selling Your Home, posted by Dave on Mon Feb 27 09:09:36 2012. We're talking about elderly. MANY bought when prices were like $30,000. |
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| (913501) | |
Re: If You Plan On Selling Your Home |
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Posted by GP38/R42 Chris on Mon Feb 27 09:58:30 2012, in response to Re: If You Plan On Selling Your Home, posted by Dave on Mon Feb 27 09:41:19 2012. In Nassau? In Queens? Plenty. Suffolk, less so, except in the affluent areas, but Nassau and Queens it's far from uncommon. |
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| (913502) | |
Re: If You Plan On Selling Your Home |
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Posted by RIPTA42HopeTunnel on Mon Feb 27 09:58:43 2012, in response to Re: If You Plan On Selling Your Home, posted by Fred G on Mon Feb 27 06:08:11 2012. It doesn't affect you or me unless you're going to make $500k profit on your house sale.$250k for an individual. |
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| (913503) | |
Re: If You Plan On Selling Your Home |
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Posted by AlM on Mon Feb 27 09:59:20 2012, in response to Re: If You Plan On Selling Your Home, posted by Dave on Mon Feb 27 09:41:19 2012. True. But it's exactly that population (elderly people who bought their homes many decades ago) that the prior posters were discussing. |
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| (913504) | |
Re: If You Plan On Selling Your Home |
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Posted by RIPTA42HopeTunnel on Mon Feb 27 10:00:15 2012, in response to Re: If You Plan On Selling Your Home, posted by Jeff Rosen on Mon Feb 27 06:18:28 2012. Bullshit. It mostly affects the elderly.Which seems appropriate, since the tax funds Medicare. |
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| (913508) | |
Re: If You Plan On Selling Your Home |
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Posted by GP38/R42 Chris on Mon Feb 27 10:02:55 2012, in response to Re: If You Plan On Selling Your Home, posted by RIPTA42HopeTunnel on Mon Feb 27 09:58:43 2012. So a widowed old lady in Nassau and Queens that wants to sell her home and move to her daughter, etc, will be SERIOUSLY screwed. $250,000 is very bad, especially in the NY Metro area. I now expand what I said to Suffolk too. Westchester should have been in my former example already. It probably even effects Brooklyn now too. |
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| (913511) | |
Re: If You Plan On Selling Your Home |
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Posted by GP38/R42 Chris on Mon Feb 27 10:04:29 2012, in response to Re: If You Plan On Selling Your Home, posted by AlM on Mon Feb 27 09:59:20 2012. RIPTA just said it's $250,000 for single. That has a HUGE effect on widows and widowers who want to either retire to "Florida" (fill in a blank), or move in with their son/daughter, etc. Very bad, as $250,000 is not much in the NY metro area. That even expands it from people that bought their homes "in the 50's", to people that bought up to the 90's. |
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| (913512) | |
Re: If You Plan On Selling Your Home |
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Posted by GP38/R42 Chris on Mon Feb 27 10:06:11 2012, in response to Re: If You Plan On Selling Your Home, posted by RIPTA42HopeTunnel on Mon Feb 27 10:00:15 2012. It's not just elderly if it's $250,000 for singles. That would effect almost everyone that bought in the NYC metro area from the 90's or earlier, as even with the slump in the market, $250,000 profit is not unusual for things bought from the 90's and earlier selling now. |
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| (913514) | |
Re: If You Plan On Selling Your Home |
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Posted by RIPTA42HopeTunnel on Mon Feb 27 10:08:07 2012, in response to Re: If You Plan On Selling Your Home, posted by GP38/R42 Chris on Mon Feb 27 10:02:55 2012. So a widowed old lady in Nassau and Queens that wants to sell her home and move to her daughter, etc, will be SERIOUSLY screwed.How is she "seriously screwed" by a 3.8 percent tax? |
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| (913515) | |
Re: If You Plan On Selling Your Home |
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Posted by GP38/R42 Chris on Mon Feb 27 10:09:57 2012, in response to Re: If You Plan On Selling Your Home, posted by RIPTA42HopeTunnel on Mon Feb 27 10:08:07 2012. Sure. Especially if she had a reverse mortgage as many elderly have. Their home often is their only asset. $20,000 is a lot of money for someone like that. |
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Re: If You Plan On Selling Your Home |
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Posted by AlM on Mon Feb 27 10:10:41 2012, in response to Re: If You Plan On Selling Your Home, posted by GP38/R42 Chris on Mon Feb 27 10:04:29 2012. If you are widowed, the basis of your house is considered in 2 parts. Half of your house is considered as inherited, and that basis is the value when your husband died. Only half has its basis valued on when you purchased. Also, capital improvements are added to the basis. The most recent new roof can always be counted in, plus anything else like siding or driveway paving.So generally widows have to consider less than 50% of the gain in value since they purchased. Chances are there is no capital gains tax if the house was bought at 50K and sold at 550K. |
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Re: If You Plan On Selling Your Home |
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Posted by AlM on Mon Feb 27 10:12:08 2012, in response to Re: If You Plan On Selling Your Home, posted by GP38/R42 Chris on Mon Feb 27 10:09:57 2012. 20K would be 3.8% on 528K. So you are talking about someone who has a gain of 528K on top of the 250K that is exempt. And see also my post about how the gain is calculated. |
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Re: If You Plan On Selling Your Home |
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Posted by AlM on Mon Feb 27 10:15:01 2012, in response to Re: If You Plan On Selling Your Home, posted by GP38/R42 Chris on Mon Feb 27 10:06:11 2012. Most single people don't buy a large house. They are more likely to buy a small house or a condo. And if you mean two single people that buy a house together and own it jointly but didn't get married, then each one gets the 250K deduction on their half of the house. |
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Re: If You Plan On Selling Your Home |
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Posted by Dave on Mon Feb 27 11:35:35 2012, in response to Re: If You Plan On Selling Your Home, posted by AlM on Mon Feb 27 10:10:41 2012. In community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), husband and wife are each usually considered to own half the community property. When either spouse dies, the total value of the community property, even the part belonging to the surviving spouse, generally becomes the basis of the entire property. For this rule to apply, at least half the value of the community property interest must be includible in the decedent's gross estate. |
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| (913529) | |
Re: If You Plan On Selling Your Home |
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Posted by Dave on Mon Feb 27 11:38:39 2012, in response to Re: If You Plan On Selling Your Home, posted by GP38/R42 Chris on Mon Feb 27 10:04:29 2012. With the exception of a few metro areas (NY, Boston, LA-San Francisco, Chicago, DC), I can't see this as being too big an issue. |
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Re: If You Plan On Selling Your Home |
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Posted by Dave on Mon Feb 27 11:39:57 2012, in response to Re: If You Plan On Selling Your Home, posted by GP38/R42 Chris on Mon Feb 27 09:55:30 2012. How many homes bought for $30,000 are worth more than $530,000? I'm not asking about homes worth that much; I'm asking about owners who bought them for $30,000. |
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Re: If You Plan On Selling Your Home |
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Posted by Dave on Mon Feb 27 11:46:55 2012, in response to Re: If You Plan On Selling Your Home, posted by GP38/R42 Chris on Mon Feb 27 10:02:55 2012. The widowed old lady received a step-up basis on her husband's half of the home value, Chris.Assume they bought a house for $30,000 and when Dad died, it was worth $400,000. Her step-up basis on his half is now (400-30)/2, or 370/2=$185,000. Assume a few years later she sells to move near her kids. Her basis is 185 + 15 (half of 30) = $200,000. Assume the house sells for $500,000. Taxable gain is $300,000 (500-200). She gets a $250,000 exemption so she's taxed on $50,000. $50,000 * 3.8% = $1900 in taxes. She certainly can afford this because she just got a check for $500,000. |
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Re: If You Plan On Selling Your Home |
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Posted by Fred G on Mon Feb 27 12:00:01 2012, in response to Re: If You Plan On Selling Your Home, posted by Dave on Mon Feb 27 11:46:55 2012. The money's going to Medicare, so the old broad will get it back in spades :)your pal, Fred |
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Re: If You Plan On Selling Your Home |
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Posted by Train Dude on Mon Feb 27 13:51:39 2012, in response to Re: If You Plan On Selling Your Home, posted by clearaspect on Mon Feb 27 08:14:52 2012. Elderly do downsize. How many elderly couples need a 5 bedroom colonial with 3 baths and a 3 car garage? |
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Re: If You Plan On Selling Your Home |
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Posted by Train Dude on Mon Feb 27 13:53:38 2012, in response to Re: If You Plan On Selling Your Home, posted by Fred G on Mon Feb 27 06:08:11 2012. Just seems odd that the most open administration in history would hide a real estate tax bill inside of a health care bill. But we voted for is just so we could see what was in it. |
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Re: If You Plan On Selling Your Home |
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Posted by GP38/R42 Chris on Mon Feb 27 14:07:03 2012, in response to Re: If You Plan On Selling Your Home, posted by AlM on Mon Feb 27 10:10:41 2012. I don't know if that is the case. If the husband died let's say 15 years ago, she's fully the owner. |
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Re: If You Plan On Selling Your Home |
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Posted by GP38/R42 Chris on Mon Feb 27 14:07:59 2012, in response to Re: If You Plan On Selling Your Home, posted by AlM on Mon Feb 27 10:15:01 2012. It doesn't have to be a large house. $500,000 nowadays is a normal price in Queens and Nassau for many homes. |
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Re: If You Plan On Selling Your Home |
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Posted by GP38/R42 Chris on Mon Feb 27 14:08:57 2012, in response to Re: If You Plan On Selling Your Home, posted by Dave on Mon Feb 27 11:38:39 2012. So? In those areas it's very much an issue. The problem is the law is blanket, not considering location. Real estate's biggest fluctuation is location. |
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Re: If You Plan On Selling Your Home |
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Posted by Dan Lawrence on Mon Feb 27 14:09:25 2012, in response to If You Plan On Selling Your Home, posted by Train Dude on Mon Feb 27 02:04:01 2012. According to the Snopes link Steve posted it's Two Years Old. Try again. |
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| (913568) | |
Re: If You Plan On Selling Your Home |
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Posted by GP38/R42 Chris on Mon Feb 27 14:11:24 2012, in response to Re: If You Plan On Selling Your Home, posted by Dave on Mon Feb 27 11:39:57 2012. If you bought a house in many areas of Nassau and Queens in the 60's, or 70's, and obviously prior, you very likely paid less than $30,000, and in those same areas, it's highly likely that $500,000 is not unusual. |
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Re: If You Plan On Selling Your Home |
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Posted by RIPTA42HopeTunnel on Mon Feb 27 14:11:55 2012, in response to Re: If You Plan On Selling Your Home, posted by GP38/R42 Chris on Mon Feb 27 14:07:03 2012. I don't know if that is the case. If the husband died let's say 15 years ago, she's fully the owner.But her adjusted cost basis is half the purchase price and half the value 15 years ago. |
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Re: If You Plan On Selling Your Home |
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Posted by RIPTA42HopeTunnel on Mon Feb 27 14:13:32 2012, in response to Re: If You Plan On Selling Your Home, posted by Dan Lawrence on Mon Feb 27 14:09:25 2012. According to the Snopes link Steve posted it's Two Years Old. Try again.The Affordable Health Care Act is almost two years old. |
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Re: If You Plan On Selling Your Home |
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Posted by The Flxible Neofan on Mon Feb 27 14:26:54 2012, in response to Re: If You Plan On Selling Your Home, posted by GP38/R42 Chris on Mon Feb 27 14:08:57 2012. This is a good point. |
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Re: If You Plan On Selling Your Home |
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Posted by SMAZ on Mon Feb 27 14:31:22 2012, in response to Re: If You Plan On Selling Your Home, posted by GP38/R42 Chris on Mon Feb 27 08:02:07 2012. It on gains AFTER that threshold not on all of it. |
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