Did you know that selling your home can put you in a new tax bracket?

Beginning January 1, 2013, ObamaCare imposes a 3.8% Medicare tax on unearned income, including the sale of single family homes, townhouses, co-ops, condominiums, and even rental income.

In February 2010, 5.02 million homes were sold, according to the National Association of Realtors. On any given day, the sale of a house, townhome, condominium, co-op, or income from a rental property can push middle-income families over the $250,000 threshold and slam them with a new tax they can’t afford.

This new ObamaCare tax is the first time the government will apply a 3.8 percent tax on unearned income. This new tax on home sales and unearned income and other Medicare taxes raise taxes more than $210 billion to pay for ObamaCare. The National Association of Realtors called this new Medicare tax on unearned income “destructive” and “ill-advised” and warned it would hurt job creation. [GOP.gov]

www.bluegrassbulletin.com/2010/05/​obamacare-impose-a...

Penalties on individuals. Individuals will pay a yearly penalty of $695, or up to 2.5% of their annual income, if they cannot show they have purchased a government-approved health policy.

Penalties on families. Families will pay a yearly penalty of $347 per child, up to $2,250 per family, if parents cannot show they have purchased a government-approved policy.

Penalties on employers. Business owners with more than 50 employees must buy government-acceptable health coverage, or pay a yearly penalty of $2,000 per employee if at least one employee receives a tax credit.

Tax on investment income. ObamaCare imposes a 3.8% annual tax on investment income of individuals making $200,000 or more and on families making $250,000 or more. The new tax is not indexed to inflation, so more people will fall under it each year. Seniors on fixed incomes and people with IRAs and 401(k) plans will be hit particularly hard.

Tax on Cadillac health plans. Starting in 2018, imposes a 40% annual tax on health care plans valued at $10,200 for individuals and $27,500 for families.

Medicare tax increase. Requires single people earning $200,000 or more and couples earning $250,000 or more to pay an additional 0.9% in Medicare taxes.

Tax on Home Sales. Imposes a 3.8% tax on home sales and other real estate transactions. Middle-income people must pay the full tax even if they are rich for only one day  the day they sell their house and buy a new one, if the profits push their adjusted gross income above the yearly limits.

Tax on medical aid devices. Creates a new 2.9% tax on medical aid devices. Certain items intended for personal use are exempt.

Tax on tanning. Imposes a 10% tax on services at tanning salons. Business owners will collect the tax from customers and send it to the federal government. This appears to be the first federal sales tax in the United States.

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