John what if the "profit" he made had to be used to buy another home?

^

Len: I think the current law allows to buy another home within period of time and you don't have to pay taxes on the capital gain. It has to be your primary home.

And, if the law changes, I am ok with that. The current law allows for tax deduction on the interest paid on the mortgage. People who take large mortgage save **** load of money by taking huge tax deductions. So, I think it is only fair to pay taxes if one makes large profit. Also, I think it will discourage home flippers and stabilize the real estate market.

We need massive tax increases just to balance the budget before we can even begin to pay down the national debt. The rich have all the money and wealth. The solution is simple. We need a VAT tax or national sales tax which will be shouldered mostly by the middle class.

JohnE, like most liberals, you lie.

Maybe that is too strong, let's just say you are confused about the truth.

Actually there are some pretty straightforward laws regarding capital gains from real estate sales involving one's primary residence.

4. Author: vquinta Date: 04/15/2010 04:09 PM Reply

In his recent guest column regarding the impact of the Health Care Bill, Paul Guppy of the Washington Policy Center claimed that a 3.8% tax on all home sales was a part of the recently passed legislation. This is inaccurate and needs to be corrected. The truth about the bill is that if you sell your home for a profit above the Capitol Gains threshold of $250,000 per individual or $500,000 per couple then you would be required to pay the additional 3.8% tax on any gain realized over this threshold.

Most people who sell their homes will not be impacted by these new regulations. This is not a new tax on every seller, and that correction needs to be made. This tax is aimed at so called “high earners” if you do not fall into that category you will not pay any extra taxes upon the sale of your home.

Sara Orrange

Government Affairs Director

Spokane Association of REALTORS…”

------------------------------------------------------

I think Errasa addressed this post previously, but I, too, am compelled to comment.

The author, Sara Orrange, is attempting to justify this tax by simply saying that it is, after all, only a tax on the rich. But many of these new Obama-inspired taxes fail to take into account regional variations in real estate values and appreciation. To achieve a beyond-$500k gain in California is really common. It may not be in Louisiana or North Dakota, but it is here. So the new tax not only targets some ignorant jackasses perception of 'rich', it also targets specific regions of this country.

In 2005 I sold a reasonably valuable property and profited mightily. In April 2006, I wrote checks to the State of Calif. and the IRS for just under $300k, and this is not including this 'new' tax. Had that been in place, it would have been only a check for another $15-30k.

Thing is that while I readily acknowledge that I would be considered wealthy by many people, I am not 'rich'

I've seen rich, and I don't qualify, not even close.

The US is really at a crossroads regarding the popular view of taxation and what is fair and justifiable.

Any Federal tax that took into account regional variations in real estate values and appreciation would be unconstitutional.

Capital gains profits are profits, pure and simple.

NO!

Say it isn't so...

#27 REALLY?!!! "MOST" people would earn a PROFIT of more than $500,000 when they sell their home. Seriously dude go check your facts. That is not true. This is not the TOTAL SALE PRICE of the home. This is the PROFIT/CAPITAL GAINS which means just that - the profit made on the sale not the gross proceeds of the sale. Even in Cali to say that MOST would make a PROFIT of more than $500K is just trying to be inflammatory. It totally depends on how long they've been in their home, where they live, etc...

If you're flipping the house you deserve to pay the taxes on the profit. If you are living in it then you're probably buying another one and most people won't pay any taxes.

BTW if you are earning $500K profit on one home sale you count as rich.

Please go check the stats on income in the USA. Median Gross Income is around $50,000. So if you make above $100,000 then you are in the top 15% of income in the USA and you qualify by any reasonable definition as rich... BTW if you make over $150,000 you are in the top 6% - still don't think you are rich????

#27 you wrote TAX CHECKS for almost $300,000 and you don't consider yourself rich????? That's either just flat bullsh&t or ignorance of the facts.

Less than 2% of the US population even GROSS over $200,000 per year.

You paid taxes of $300K then your gross is at least $750,000. Nah, that's not rich.....

They're lighting torches!

Double the security on the perimeter!

Pay the tax or your property rights will be forfeit!

Hand out more government cheese....they're in the fencelines! Where's that truck full of landmines!?