Reuters
Find out what’s in it: IRS issues 159 pages of new tax rules
The Internal Revenue Service has released new rules for investment income taxes on capital gains and dividends earned by high-income individuals that passed Congress as part of the 2010 healthcare reform law.
The 3.8 percent surtax on investment income, meant to help pay for healthcare, goes into effect in 2013. It is the first surtax to be applied to capital gains and dividend income.
The tax affects only individuals with more than $200,000 in modified adjusted gross income (MAGI), and married couples filing jointly with more than $250,000 of MAGI. …
The 159 pages of rules spell out when the tax applies to trusts and annuities, as well as to individual securities traders.
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We’re more oppressed than the colonists were under King George. I wonder what the breaking point will be?
darwin on December 4, 2012 at 11:25 AM
To find out what’s in it you have to go to trial.
DeathtotheSwiss on December 4, 2012 at 11:25 AM
Oh good. It’s not like the tax code is ridiculously complicated as it is.
VinceOfDoom on December 4, 2012 at 11:26 AM
2014 hopefully, Darwin. 2014.
Unless we can impeach President Obama for the Libya mess, but how much better would Biden be?
DeathtotheSwiss on December 4, 2012 at 11:26 AM
Here, Drink this. We’ll find out what it is at your autopsy.
portlandon on December 4, 2012 at 11:31 AM
This ObamaCare Tax also applies to gains on sale of Real Estate.
HUGE tax increase for many people, will likely devastate any recovery in the housing market.
Norwegian on December 4, 2012 at 11:32 AM
Isn’t their objective to prevent any economic recovery anyway?
darwin on December 4, 2012 at 11:34 AM
Welcome to hell, enjoy your stay.
ElectricPhase on December 4, 2012 at 11:45 AM
Only 159 pages? Guess they didn’t find enough tax rules to make it 500? Someone isn’t doing their job, this is not near enough?
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letget on December 4, 2012 at 11:50 AM
Only in cases that a sale of real estate would normally count as investment income, which for the vast majority of people is never.
http://www.irs.gov/irb/2005-07_IRB/ar10.html
So you would have to realize over $250k in profit from selling your home before paying a penny in capital gains (or now thanks to the healthcare law 1.38 pennies). If you buy a house for $300k and sell it for $600k you will be on the hook for $1900 in additional taxes. The realtors will walk away with around $36,000 though, if you want to get your tax money back just knock their commission back .03% and you’ll be at parity.
It’s going to have extremely little impact on the housing market.
jonknee on December 4, 2012 at 11:56 AM
The unhelpful media won’t tell us how many taxes there are in ObamaCare, until we have to pay them, and if they apply to us. They won’t list them so we can add them up. Somewhere I read…billions in dollars of taxes over the next 10 years. I want to know if my health insurance plan is taxed, but they don’t want me to worry about it, because “I can keep my plan if I want to.”
This looks like it is targeting Obama’s favorite group of taxpayers behind the tree. He wants $800 billion (over 10 years) out of them for the Bush tax rates – to “Pay For the tax cuts for the middle class”. Plus this, which I read elsewhere is $500 billion over ten years. That is a total increase of one trillion, three hundred billion on the same people over the same ten years. Do you think they will all be anxious to earn money, or would you sit on a beach somewhere enjoying your cash…hmmm…ok, or a mountain top. If you don’t generate income you don’t pay taxes.
Look for people converting large shares of things into cash as we come down to 12/31/12.
Fleuries on December 4, 2012 at 12:01 PM
If you guys will just accept that this is the end, then news like this can be enjoyed as the confirmation of your cynical world view that it is.
DFCtomm on December 4, 2012 at 12:05 PM
If you live in one of the high priced housing states it could affect you. The 3.9% surcharge kicks in for any capital gains over 500 K on a housing sale.
The problem with the whole 3.9% surcharge is that the Obama administration is demonizing the rich on not paying their fair share. So he wants to return to the Clinton era tax rates. What he doesn’t tell the people is that Otaxacare has done that for those making over 200,000 single or 250,000 married. 3.9% + 0.9%= 4.8%
What the rat *asdards want to do is 35% + 4% (tax rate increase) + 4.8% = 43.8% which far higher than Clinton era rates.
Why isn’t the GOP screaming this from the housetops. Oh, that’s right TrueKing is spot on: The GOP will Betray You.
chemman on December 4, 2012 at 12:08 PM
Oh, great as a former CPA, I pity those who will have to wade through this mess.
Personally, I think that former Presidents should no longer be able to make earn any money after they leave office. They should become wards of the state and live only on their pensions.
SC.Charlie on December 4, 2012 at 12:52 PM
Just sign your check and send it in.
Always starve the Looters!!!
Schadenfreude on December 4, 2012 at 1:18 PM
Look for people converting large shares of things into cash as we come down to 12/31/12. – Fleuries on December 4, 2012 at 12:01 PM
What good is cash? You can’t earn any interest on “your” cash and the government printing presses are ready to roll print more of the worthless paper.
SC.Charlie on December 4, 2012 at 1:19 PM