Why I Do Not Say Much on Facebook

I have watched Ken Houghton, Tom Bozzo, and Daniel Becker out on Facebook and have sometimes made a few not to serious remarks. Similar interests. There are some I just associate with who like to engage in politics which I usually ignore. I go out of the way not to engage with people because you would have a better conversation talking to a wall at times. This commentary defies logic, shows no understanding of what is taking place, and neither does she care how many will be hurt by this. It was hard to pass up. I am sure this person will eventually drop me.

Sheri: A very important component of the proposed tax changes will help ensure homeownership remains a valuable financial incentive over renting — and a big reason why I’m a republican — homeownership is truly a HUGE part of the American dream. Any presidential administration that enacts laws that erode it is NOT okay in my book. If you got socked with the ‘3.8% property sales tax’ since 2012, go ahead and flip the bird at Obamma’s picture if it makes you feel better. Thank God we again have a republican president that gets how crucial real estate is to our economy and way of life!!

A few points to note regarding the proposed tax changes related to real estate:

A last-minute change to the Senate version would make up to $10,000 in property taxes deductible. Previously, the Senate version had eliminated the property tax deduction entirely. The change aligns with the property tax cap set in the House bill.

One difference between the two bills is that the Senate version retains the deductibility of mortgage interest payments on up to $1 million of indebtedness; the House version caps
indebtedness at $500,000.

Now, members of the Senate and the House must meet to agree on a final bill. It’s not too late to make your voice heard. Tell your members of Congress that incentives for homeownership and the capital gains tax exclusion on the sale of a home MUST be protected.

Myself: It is not often I say much out here as much of what is said defies reason. I assume you make >$200,000 AGI as a single person or >$250,000 AGI as a member of a marriage? It is then the investment tax hits with after another exclusion.

Another limitation is that it’s imposed on the smaller of:

1. A person’s investment income, or
2. The amount by which AGI exceeds the threshold amounts of $250,000/$125,000 or $200,000.

But there is more. There is a limiting factor on the house sale:

It only applies to home sale profits above a $500,000/$250,000 exclusion.

When the portion of the profit above $500,000/$250,000 causes the seller’s AGI to exceed the threshold amounts.

Let’s say a couple has an AGI of $325,000 and sells their home at a $525,000 profit (not sale proceeds, but profit). $500,000 of that gain is excluded; the $25,000 isn’t, and raises their AGI to $350,000.

The couple’s revised AGI exceeds the $250,000 threshold for joint filers by $100,000. That’s more than the amount of their taxable gain ($25,000). So the 3.8% is applied to the smaller of these two amounts. They owe a surtax of $950 ($25,000 x 3.8%).

There has always been a capital gains tax on homes when you sell them and it is wise to keep your receipts on renovation of a home as that comes off of the profits in the end when you make the final reckoning. This tax does not apply to everyone in the US. I certainly do not have $250,000 or $200,000 in AGI income. Of the ~156 million of Household Taxpayers, ~5.5 million Households exceed $200,000 in income annually or ~3.5% of the total (Tax Policy Center numeric).

The 3.8% tax itself + the 9 tenths of 1% go to fund healthcare, Medicare, and Medicaid. Now as far as the GOP Tax plan of which ~66% of will go to less than 1% of the household taxpayers (~1 million households), those making less than $75,000 will start to see their taxes rise even before 2027. The GOP tax plan is a scam and rides on the backs of the middle class.

Sheri: While that is true, it doesn’t change the fact that it is a grossly unjust tax, which was put in place to support Obummer’s ‘ACA’. People making $250k/yr are already paying high taxes, and it is tough enough to make money on investments in this economy — 0.25% interest on a CD — no thanks. Any ‘surplus’ taxes that discourage investing in RE are a bad thing.

Myself: I will stand by my understanding as will many other people. It is a tax giveaway to less than 1% of the taxpaying households making greater than $500,000 . It is not hard to make money on investments.

Sheri: It’s still a ‘take from the successful to give to the poor’ SURPLUS tax, and it applies to couples who make $250k, and individuals who make $200k, which in today’s economy is by no means ‘wealthy’. I’m sick and tired of liberals thinking taxation is the answer to everything — it is not.

Myself: It is obvious you did not read all of what I said. Please take a moment and read it all.

Sheri: It is OBVIOUS you are a liberal.

Myself: Non Sequitur.