Capital gains on the sale of a new home?

[Blueface]

Folks,
A new sales tax has been created for home sales.
This tax is built into the health care bill recently passed.
It has nothing to do with the amount of the home but rather your income.
Here is the excerpt:
unveiled today includes a 3.8% Medicare tax on investment income (interest, dividends, capital gains, annuities, rents) earned by those with incomes in excess of $200,000 (single) and $250,000 (joint).

While I don't have to be concerned with that, some do.
Now......does anyone really think it wasn't important to read all those pages?
Let's all give a shout out thank you.

[ade06]

Originally Posted by Blueface

Folks,
A new sales tax has been created for home sales.
This tax is built into the health care bill recently passed.
It has nothing to do with the amount of the home but rather your income.
Here is the excerpt:
unveiled today includes a 3.8% Medicare tax on investment income (interest, dividends, capital gains, annuities, rents) earned by those with incomes in excess of $200,000 (single) and $250,000 (joint).

While I don't have to be concerned with that, some do.
Now......does anyone really think it wasn't important to read all those pages?
Let's all give a shout out thank you.

Would the sale of your primary residence be considered "investment income" subject to this new tax?

[Blueface]

Originally Posted by ade06

Would the sale of your primary residence be considered "investment income" subject to this new tax?

From what I understand, yes.

Also, while this $200,000/250,000 range seems to not affect many of us, being the cynical person I can be at times, I can't help but wonder how long it will be before that is significantly reduced to where it does in fact affect most of us.

[forgop]

Originally Posted by Blueface

Folks,
A new sales tax has been created for home sales.
This tax is built into the health care bill recently passed.
It has nothing to do with the amount of the home but rather your income.
Here is the excerpt:
unveiled today includes a 3.8% Medicare tax on investment income (interest, dividends, capital gains, annuities, rents) earned by those with incomes in excess of $200,000 (single) and $250,000 (joint).

While I don't have to be concerned with that, some do.
Now......does anyone really think it wasn't important to read all those pages?
Let's all give a shout out thank you.

Considering my wife and I are unemployed, our income won't factor into the equation. The primary concern for me is to "sandbag" any capital gains in order to ensure I stay well below the EIC credit and so I can extend my 99 weeks of unemployment through until I'm out of college in May 2012. I haven't filed for a single week in 2010 yet.

[Blueface]

Originally Posted by forgop

Considering my wife and I are unemployed, our income won't factor into the equation. The primary concern for me is to "sandbag" any capital gains in order to ensure I stay well below the EIC credit and so I can extend my 99 weeks of unemployment through until I'm out of college in May 2012. I haven't filed for a single week in 2010 yet.

Then seems no new tax concern for you. However, you will have to reinvest that money into a new home or face the tax man.
As an example, a few years ago, I sold a condo I owned as a rental property and didn't buy anything new. I ended up sending a check for $22,000 in April of the following year.

[forgop]

Originally Posted by Blueface

Then seems no new tax concern for you. However, you will have to reinvest that money into a new home or face the tax man.
As an example, a few years ago, I sold a condo I owned as a rental property and didn't buy anything new. I ended up sending a check for $22,000 in April of the following year.

I already purchased a new home in March for ~ $80-85k more than the first home is expected to sell for. I never imagined in this market I would have gotten what I paid for it, let alone a potential $30k gain. If I reall do end up at that price, the amount of house I got for the additional cost means I almost stole it IMO.

Plus, keeping ny income next to nothing should give me all kinds of $ for college in the 2011 school year. I hate that it comes to that, but when you lose your job twice in the span of 25 months, it's time for a career change. The first was the company I contracted for lost its contract and the last one was a 30% staff reduction. I was replaced so they could save an additional 50% in payroll for a department starting with 14 people dwindling down to 6 when I was let go. I just don't have the mindset to work in corporate America any longer and the recurring nightmare of losing my job
there has completely shot my confidence.

[ade06]

Originally Posted by forgop

Plus, keeping ny income next to nothing should give me all kinds of $ for college in the 2011 school year. I hate that it comes to that, but when you lose your job twice in the span of 25 months, it's time for a career change. The first was the company I contracted for lost its contract and the last one was a 30% staff reduction. I was replaced so they could save an additional 50% in payroll for a department starting with 14 people dwindling down to 6 when I was let go. I just don't have the mindset to work in corporate America any longer and the recurring nightmare of losing my job
there has completely shot my confidence.

Getting laid off from my corporate job was one of the main reasons that I decided to go to law school. Six months out of work gives you a lot of time to think about what you want out of life. I figured, if I ever was laid off from a law firm, I could hang my shingle on the wall and still make a living.

[forgop]

Originally Posted by ade06

Getting laid off from my corporate job was one of the main reasons that I decided to go to law school. Six months out of work gives you a lot of time to think about what you want out of life. I figured, if I ever was laid off from a law firm, I could hang my shingle on the wall and still make a living.

I considered law school after I got my first undergrad in '98, but figured it was not worth it cuz there are a LOT of lawyers out there making $50k/year out there.

I'm going to start nursing school in January. How many nurses has been let go even in this economy? None that I've heard. Plus, I'll work 2-3 days a week and make more money than I was previously makin at 50+ hours/week. Part of me also thinks that having dealt far too much with nurses/doctors when my parents were dying, I felt it was something I can do to give back to a patient or family member. You can sit behind a desk all day and make zero difference in the lives of anyone around you other than lining someone else's pocket for the most part.