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        <title>Real Estate Blog</title>
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            <guid>http://www.viewdelawarehomes.com/blog/top-five-reasons-people-buy-homes-in-delaware.html</guid>
            <link>http://www.viewdelawarehomes.com/blog/top-five-reasons-people-buy-homes-in-delaware.html</link>
            <author>Don@viewdelawarehomes.com (Don Williams)</author>
            <title>Top Five Reasons People buy homes in Delaware</title>
            <description> <![CDATA[ 
I started to think about the reasons for why people buy homes in Delaware and a lot of ideas ran through my head. &nbsp;I have come down to the top five reasons to buy a home in Delaware.

Starting backwards, the fifth reason for buying a home in Delaware, especially if it is a retirement home in Rehoboth Beach, or a second home in Bethany Beach is beacuse they want control over there home. &nbsp;They want the freedom to express themselves with the way the decorate thier home, they also want freedom with the way the home flows and how they use it. &nbsp;Everything is their decission &nbsp;and theirs alone because they do not have to answer to a landlord for permission to change a thing, whether it is the shrubry outside, or the carpet inside.

The fourth reason People buy homes in Delaware, especially places again like Rehoboth Beach, Lewes, Bethany Beach, Ocean View Millsboro, Milton and other towns is for the shear investment of the home. &nbsp;Since the year 2000, only on investment vehicle out performed real estate, and that was gold! &nbsp;Not the DOW, the NASDAQ or the New York Stock exchange. &nbsp;In fact since the beginning of the century, real estate has out preformed all three stock markets by a whopping six times! &nbsp;Thats right, your wealth went up 600% over your other investments. &nbsp;And by owning your own home, townhome or condo, you are not making someone else like a landlord or investor rich.

The third reason people buy homes in Delaware is that they want more room around them, renting an apartment means usually only 2 bedrooms and if you are lucky you may even have two baths. &nbsp; But in most homes, townhomes and even condos, the choice is yours. &nbsp;Four Bedrooms, sometimes more, dinning rooms, living rooms, family rooms, thier own yard, are just a few of the many reasons for more room.

We are almost near the end of why people in Delaware buy homes. &nbsp;But I wanted to interject that it is my job to make sure that people buy for the right reason, there are no bad reasons except for those who cannot afford them or them who cannot keep them up! &nbsp;And as a Trusted Advisor, which I take very seriously, I am always looking to for the purchasers big why. &nbsp;Why do they want to buy? &nbsp;I don't sell homes for the paycheck, I do for that special feeling when I truly help people, and if they are not ready to purchase, I will do that as well.

Reason number two of why people buy homes is to have a safe feeling to raise their families in. &nbsp;Nothing feels safer or gives more comfort than your own home. &nbsp;People of all ages may like to travel, but when they finally get home, nothing compares to that safe, relaxing comfortable feeling poeple and families enjoy. &nbsp;Think back to when you yourself was just a kid, can you think of anywhere that made you feel safe then? &nbsp;I know I cannot.

And now and probably the biggest reason people in Delaware buy homes is to raise their families. &nbsp;I could talk all day long about why this is the biggest reason, and I most likely said a few of those reason above. &nbsp;The truth is, a lot of factors come into play when a family decides on a home to raise their children ( which in most cases is their most prised position and the people that mean the most to them in the world). &nbsp;




 ]]> </description>
            <pubDate>Fri, 06 Apr 2012 20:58:19 -0400</pubDate>
                    </item>
        <item>
            <guid>http://www.viewdelawarehomes.com/blog/watching-out-for-credit-theft-just-a-word-about-it.html</guid>
            <link>http://www.viewdelawarehomes.com/blog/watching-out-for-credit-theft-just-a-word-about-it.html</link>
            <author>Don@viewdelawarehomes.com (Don Williams)</author>
            <title>Watching out for Credit Theft!  Just a word about it.</title>
            <description> <![CDATA[ 
Be aware that companies you do business with may sell your credit information. Now, many of the people buying the names and addresses of people who have given their credit information are legitimate marketing companies who are searching for a particular target audience. But lately, there is a rise of not-so-legitimate people who are buying your credit information to actually steal your credit profile.


We’ve all heard about identity theft, but how does it happen. Historically, it has usually been a case of the bad guys either rummaging through your garbage for old bank and credit card statements; or hacking a website where you entered info (like a credit card); or there have even been cases where bank databases where compromised. But, the sale of your information seems to be the most scary of them all. For between $40 and $80, would be thieves can really mess up your credit and life.


True, most identity theft can be fixed, but it can take months – even when you hire an expert. Especially when you are looking to buy a home or even refinance it, months can be fatal.
 ]]> </description>
            <pubDate>Thu, 29 Mar 2012 18:50:57 -0400</pubDate>
                    </item>
        <item>
            <guid>http://www.viewdelawarehomes.com/blog/the-cost-of-a-home-does-not-depend-on-the-price-of-a-home.html</guid>
            <link>http://www.viewdelawarehomes.com/blog/the-cost-of-a-home-does-not-depend-on-the-price-of-a-home.html</link>
            <author>Don@viewdelawarehomes.com (Don Williams)</author>
            <title>The Cost of a home does not depend on the Price of a home.</title>
            <description> <![CDATA[ 
The Price of the home does not always tell you the cost of the home unless you are going to pay cash for the home.  Even a 1 percent change in mortgage rates will cost 10% of your buying power.  Below is the article I wanted to present you with to help explain the true cost of buying a home complete with a graph that will visually explain what we are talking about.


We have often advised buyers to look at the COST of purchasing a house more than the PRICE of the home. Obviously, price is part of the cost equation. The other piece, assuming you are not an all cash buyer, is the mortgage rate. The mortgage rate to finance a purchase can have a dramatic impact on the overall cost. Recently, there are more people talking about the possibility that mortgage rates could begin to increase.


HSH.com studies trends in mortgage rates. They explain:


“A better economic climate almost always brings higher rates, and a lessening of the troubles in Europe from massive central bank assistance adds to the movement of money from safe havens to more risky assets, driving rates upward.”


Dan Green of The Daily Market Reports recently stated:


“The Fed sees growth coming faster than originally expected. There’s suddenly less chance that the Federal Reserve will intervene to help keep mortgage rates low. Absent Fed intervention, mortgage rates are apt to rise and Wall Street is now betting that the Fed has bowed out. With no stimulus, mortgage rates rise.”


Lawrence Yun, chief economist for the National Assoc of Realtors, recently wrote:


“Mortgage rates will be starting to rise. From the 3.9 to 4.0 percent average rate in the past five months on a 30-year fixed mortgage, the new rates will soon be in the range of 4.3 to 4.6 percent.”


Yun explains his logic here.


We do not attempt to predict future interest rates. We leave that up to the experts in the field. However, we want our readers to understand the potential impact on the cost of purchasing a home if they do rise. Here is a simple table that shows, even if the PRICE of a home softens, the COST of a home could increase.


                                                                           


 


Here is what we are saying: 


Many purchasers think they should wait until they are sure that prices have hit bottom. Deciding whether or not to wait should be determined by where the COST of a home is headed.
 ]]> </description>
            <pubDate>Mon, 19 Mar 2012 10:23:59 -0400</pubDate>
                    </item>
        <item>
            <guid>http://www.viewdelawarehomes.com/blog/you-get-what-you-pay-for-with-realtors.html</guid>
            <link>http://www.viewdelawarehomes.com/blog/you-get-what-you-pay-for-with-realtors.html</link>
            <author>Don@viewdelawarehomes.com (Don Williams)</author>
            <title>You Get What You Pay For with Realtors</title>
            <description> <![CDATA[ 
Does it makes sense to pay a full commission to your real estate agent in today’s market? Sellers, buyers and even agents are debating what should be charged to assist a consumer in completing a real estate transaction. Forget what the actual amount of the commission is. The bigger question is whether you should pay a ‘full fee’ when hiring a real estate expert to guide you through the complexities of today’s rapidly changing housing environment.


If a full fee was the rule in 2006 when completing a deal was so much simpler, why would you now consider cutting the fee of your agent in today’s tumultuous market? You are depending on this person to help you reach your goals in a sale or purchase. In 2006, buyers were willing to pay almost anything to a seller just to get into a home. Banking entities seemed to be willing to mortgage any property for any buyer. The process was rather simple.


Today, a person looking to buy or sell should be willing to pay a full fee for two reasons:


You need an expert guide if you are traveling a dangerous path


The field of real estate is loaded with land mines. You need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a buyer willing to pay fair market value for your home at a time that there are mass inventories of foreclosures and short sales will take a true real estate professional. Finding reasonable financing can also be tricky in today’s lending environment.


Experts in any profession do not discount their fees; especially when the job is becoming much more difficult.


You need a skilled negotiator


In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible re-negotiation of that off after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.


When an agent is negotiating their commission with you, they are negotiating their own salary – the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.


Bottom Line


We believe that famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.
 ]]> </description>
            <pubDate>Wed, 07 Mar 2012 11:10:27 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.viewdelawarehomes.com/blog/is-it-the-price-of-your-home-or-the-price-of-your-happiness-dont-put-your-life-on-hold.html</guid>
            <link>http://www.viewdelawarehomes.com/blog/is-it-the-price-of-your-home-or-the-price-of-your-happiness-dont-put-your-life-on-hold.html</link>
            <author>Don@viewdelawarehomes.com (Don Williams)</author>
            <title>Is it the Price of your Home or the Price of your Happiness?  Don't put your life on Hold!</title>
            <description> <![CDATA[ 
Recently while Blogger Steve Harney was speaking to home sellers in the north east, he was reminded as I am that you cannot put your life on hold.  He spoke in front of an audience of home sellers to tell them that their home prices may be impacted by shadow inventory which are homes that will be soon for sale that are currently being held by banks that were foreclosed on.  Many states have already cleared out a great deal of inventory already, but in some areas the banks are holding back.  When these homes do hit the market it will affect the price of homes somewhat.  I do not think that affect is enough to put your life on hold however, and when a member of Steve's audience spoke to him, it became even more clear.  Following is what Steve had to say:


I recently gave a presentation about the current real estate market to a group of home sellers in a city in the Northeast.  That night, I explained to them that home values in their area were about to be negatively impacted by a surge of distressed properties entering their region over the next year. As I have often found to be the case, the homeowners were very receptive; many felt that they now had the information they needed to make a good decision with regard to pricing their home to sell in this market.


After the class that night, several of the homeowners came up to me to privately discuss their personal situations. One of these owners said something I will never forget. He shared with me that he had come to a revelation that night.


This particular homeowner had put his home on the market with plans to move to Florida, where his daughter and his infant grandson live. He missed his daughter very much and missed his grandson even more. He hated every passing day that he wasn’t able to “hold the baby in my arms and rock him to sleep”.  That night at the seminar, he thanked me for reminding him of the reason he put his home on the market in the first place – he needed to rejoin his family. I was struck by the wisdom of his final words to me before he turned to walk away.


“I thought I was putting a price on my home. While I hold out– hoping to get a few more dollars, I am actually putting a value on my happiness.”


He adjusted his asking price that night and sold it three days later. Very soon, he will be able to rock his grandson to sleep in his arms, both of them happy and content.
 ]]> </description>
            <pubDate>Tue, 28 Feb 2012 09:34:51 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.viewdelawarehomes.com/blog/is-there-a-38-tax-in-home-sales-that-go-to-the-health-care-bill4.html</guid>
            <link>http://www.viewdelawarehomes.com/blog/is-there-a-38-tax-in-home-sales-that-go-to-the-health-care-bill4.html</link>
            <author>Don@viewdelawarehomes.com (Don Williams)</author>
            <title>Is there a 3.8% tax in Home Sales that go to the Health Care Bill?</title>
            <description> <![CDATA[ 
We have received many questions about a possible 3.8% tax which will be put on home sales beginning in 2013. We want to do our best to clarify this situation for everyone. We are not accountants and give you this information just as a simple answer to the misconception. Understand that, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.


A little history on the confusion


Fact Check.org explains it this way:


The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home.


We can understand how this misconception got started. The law itself is couched in highly technical language that only a qualified tax expert can fully grasp. (This provision begins on page 33 of the reconciliation bill that was passed and signed into law.) And it does say the tax falls on “net gain … attributable to the disposition of property.” That would include the sale of a home. But the bill also says the tax falls only on that portion of any gain that is “taken into account in computing taxable income” under the existing tax code. And the fact is, the first $250,000 in profit on the sale of a primary residence (or $500,000 in the case of a married couple) is excluded from taxable income already. (That exclusion doesn’t apply to vacation homes or rental properties.)


The Joint Committee on Taxation, the group of nonpartisan tax experts that Congress relies on to analyze tax proposals, underscores this in a footnote on page 135 of its report on the bill. The note states: “Gross income does not include … excluded gain from the sale of a principal residence.”


And just to be sure, we checked with William Ahern, director of policy and communications for the nonprofit, pro-business Tax Foundation. “Some home sales would see a tax increase under this bill,” Ahern told us, “but it would have to be a second home or a principal residence generating [a gain of] more than $250,000 ($500,000 for a couple).”


Simple Explanation:


The following simple explanation comes from midiShaw:


The tax will affect those sellers of real property who will be otherwise taxed on capital gains under current tax laws. Under current laws, if you sell your primary residence and meet the ‘time ‘ criteria, you are exempt up to $250,000 or $500,000 (filing individually or jointly). Any amount realized OVER that amount is taxable under current tax schedules based on income. As such, this new tax will apparently be added to the current capital gains tax burden IF your income is over $200,000/$250,000 (filing individually or jointly). For those selling second homes and investment properties, the tax, once again, will be applied to the amount of gain realized.


Misundertstood about the taxes being used to support the Health Care Bill, this article should help you greatly as I offer you the following:


Detailed Explanation:


The following also comes from midiShaw in a comment to the above answer.


Beginning in 2013, the national health care reform legislation that became law in March, 2010, imposes a new 3.8 percent tax on certain investment income. The new tax will apply to single filers with incomes over $200,000 and married taxpayers with incomes over $250,000. Under the law, the investment tax provisions in Chapter 2A of the Internal Revenue Code are placed under the heading “Unearned Income Medicare Contribution.” In general, this new Medicare tax will apply to investment income that is subject to income tax, which includes capital gains. Pursuant to IRC Section 1402 (C)(1)(A)(iii), the investment income to which this new tax applies includes “net gain” (to the extent taken into account in computing taxable income) attributed to the disposition of property that qualifies as a capital asset under Section 1221 (capital gains), as well as gains on other property that are considered part of ordinary income.


We offer this just as an explanation. Remember, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.
 ]]> </description>
            <pubDate>Thu, 23 Feb 2012 09:29:47 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.viewdelawarehomes.com/blog/is-there-a-38-tax-in-home-sales-that-go-to-the-health-care-bill3.html</guid>
            <link>http://www.viewdelawarehomes.com/blog/is-there-a-38-tax-in-home-sales-that-go-to-the-health-care-bill3.html</link>
            <author>Don@viewdelawarehomes.com (Don Williams)</author>
            <title>Is there a 3.8% tax in Home Sales that go to the Health Care Bill?</title>
            <description> <![CDATA[ 
We have received many questions about a possible 3.8% tax which will be put on home sales beginning in 2013. We want to do our best to clarify this situation for everyone. We are not accountants and give you this information just as a simple answer to the misconception. Understand that, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.


A little history on the confusion


Fact Check.org explains it this way:


The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home.


We can understand how this misconception got started. The law itself is couched in highly technical language that only a qualified tax expert can fully grasp. (This provision begins on page 33 of the reconciliation bill that was passed and signed into law.) And it does say the tax falls on “net gain … attributable to the disposition of property.” That would include the sale of a home. But the bill also says the tax falls only on that portion of any gain that is “taken into account in computing taxable income” under the existing tax code. And the fact is, the first $250,000 in profit on the sale of a primary residence (or $500,000 in the case of a married couple) is excluded from taxable income already. (That exclusion doesn’t apply to vacation homes or rental properties.)


The Joint Committee on Taxation, the group of nonpartisan tax experts that Congress relies on to analyze tax proposals, underscores this in a footnote on page 135 of its report on the bill. The note states: “Gross income does not include … excluded gain from the sale of a principal residence.”


And just to be sure, we checked with William Ahern, director of policy and communications for the nonprofit, pro-business Tax Foundation. “Some home sales would see a tax increase under this bill,” Ahern told us, “but it would have to be a second home or a principal residence generating [a gain of] more than $250,000 ($500,000 for a couple).”


Simple Explanation:


The following simple explanation comes from midiShaw:


The tax will affect those sellers of real property who will be otherwise taxed on capital gains under current tax laws. Under current laws, if you sell your primary residence and meet the ‘time ‘ criteria, you are exempt up to $250,000 or $500,000 (filing individually or jointly). Any amount realized OVER that amount is taxable under current tax schedules based on income. As such, this new tax will apparently be added to the current capital gains tax burden IF your income is over $200,000/$250,000 (filing individually or jointly). For those selling second homes and investment properties, the tax, once again, will be applied to the amount of gain realized.


Misundertstood about the taxes being used to support the Health Care Bill, this article should help you greatly as I offer you the following:


Detailed Explanation:


The following also comes from midiShaw in a comment to the above answer.


Beginning in 2013, the national health care reform legislation that became law in March, 2010, imposes a new 3.8 percent tax on certain investment income. The new tax will apply to single filers with incomes over $200,000 and married taxpayers with incomes over $250,000. Under the law, the investment tax provisions in Chapter 2A of the Internal Revenue Code are placed under the heading “Unearned Income Medicare Contribution.” In general, this new Medicare tax will apply to investment income that is subject to income tax, which includes capital gains. Pursuant to IRC Section 1402 (C)(1)(A)(iii), the investment income to which this new tax applies includes “net gain” (to the extent taken into account in computing taxable income) attributed to the disposition of property that qualifies as a capital asset under Section 1221 (capital gains), as well as gains on other property that are considered part of ordinary income.


We offer this just as an explanation. Remember, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.
 ]]> </description>
            <pubDate>Thu, 23 Feb 2012 09:29:44 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.viewdelawarehomes.com/blog/is-there-a-38-tax-in-home-sales-that-go-to-the-health-care-bill2.html</guid>
            <link>http://www.viewdelawarehomes.com/blog/is-there-a-38-tax-in-home-sales-that-go-to-the-health-care-bill2.html</link>
            <author>Don@viewdelawarehomes.com (Don Williams)</author>
            <title>Is there a 3.8% tax in Home Sales that go to the Health Care Bill?</title>
            <description> <![CDATA[ 
We have received many questions about a possible 3.8% tax which will be put on home sales beginning in 2013. We want to do our best to clarify this situation for everyone. We are not accountants and give you this information just as a simple answer to the misconception. Understand that, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.


A little history on the confusion


Fact Check.org explains it this way:


The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home.


We can understand how this misconception got started. The law itself is couched in highly technical language that only a qualified tax expert can fully grasp. (This provision begins on page 33 of the reconciliation bill that was passed and signed into law.) And it does say the tax falls on “net gain … attributable to the disposition of property.” That would include the sale of a home. But the bill also says the tax falls only on that portion of any gain that is “taken into account in computing taxable income” under the existing tax code. And the fact is, the first $250,000 in profit on the sale of a primary residence (or $500,000 in the case of a married couple) is excluded from taxable income already. (That exclusion doesn’t apply to vacation homes or rental properties.)


The Joint Committee on Taxation, the group of nonpartisan tax experts that Congress relies on to analyze tax proposals, underscores this in a footnote on page 135 of its report on the bill. The note states: “Gross income does not include … excluded gain from the sale of a principal residence.”


And just to be sure, we checked with William Ahern, director of policy and communications for the nonprofit, pro-business Tax Foundation. “Some home sales would see a tax increase under this bill,” Ahern told us, “but it would have to be a second home or a principal residence generating [a gain of] more than $250,000 ($500,000 for a couple).”


Simple Explanation:


The following simple explanation comes from midiShaw:


The tax will affect those sellers of real property who will be otherwise taxed on capital gains under current tax laws. Under current laws, if you sell your primary residence and meet the ‘time ‘ criteria, you are exempt up to $250,000 or $500,000 (filing individually or jointly). Any amount realized OVER that amount is taxable under current tax schedules based on income. As such, this new tax will apparently be added to the current capital gains tax burden IF your income is over $200,000/$250,000 (filing individually or jointly). For those selling second homes and investment properties, the tax, once again, will be applied to the amount of gain realized.


Misundertstood about the taxes being used to support the Health Care Bill, this article should help you greatly as I offer you the following:


Detailed Explanation:


The following also comes from midiShaw in a comment to the above answer.


Beginning in 2013, the national health care reform legislation that became law in March, 2010, imposes a new 3.8 percent tax on certain investment income. The new tax will apply to single filers with incomes over $200,000 and married taxpayers with incomes over $250,000. Under the law, the investment tax provisions in Chapter 2A of the Internal Revenue Code are placed under the heading “Unearned Income Medicare Contribution.” In general, this new Medicare tax will apply to investment income that is subject to income tax, which includes capital gains. Pursuant to IRC Section 1402 (C)(1)(A)(iii), the investment income to which this new tax applies includes “net gain” (to the extent taken into account in computing taxable income) attributed to the disposition of property that qualifies as a capital asset under Section 1221 (capital gains), as well as gains on other property that are considered part of ordinary income.


We offer this just as an explanation. Remember, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.
 ]]> </description>
            <pubDate>Thu, 23 Feb 2012 09:29:41 -0500</pubDate>
                    </item>
        <item>
            <guid>http://www.viewdelawarehomes.com/blog/is-there-a-38-tax-in-home-sales-that-go-to-the-health-care-bill1.html</guid>
            <link>http://www.viewdelawarehomes.com/blog/is-there-a-38-tax-in-home-sales-that-go-to-the-health-care-bill1.html</link>
            <author>Don@viewdelawarehomes.com (Don Williams)</author>
            <title>Is there a 3.8% tax in Home Sales that go to the Health Care Bill?</title>
            <description> <![CDATA[ 
We have received many questions about a possible 3.8% tax which will be put on home sales beginning in 2013. We want to do our best to clarify this situation for everyone. We are not accountants and give you this information just as a simple answer to the misconception. Understand that, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.


A little history on the confusion


Fact Check.org explains it this way:


The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home.


We can understand how this misconception got started. The law itself is couched in highly technical language that only a qualified tax expert can fully grasp. (This provision begins on page 33 of the reconciliation bill that was passed and signed into law.) And it does say the tax falls on “net gain … attributable to the disposition of property.” That would include the sale of a home. But the bill also says the tax falls only on that portion of any gain that is “taken into account in computing taxable income” under the existing tax code. And the fact is, the first $250,000 in profit on the sale of a primary residence (or $500,000 in the case of a married couple) is excluded from taxable income already. (That exclusion doesn’t apply to vacation homes or rental properties.)


The Joint Committee on Taxation, the group of nonpartisan tax experts that Congress relies on to analyze tax proposals, underscores this in a footnote on page 135 of its report on the bill. The note states: “Gross income does not include … excluded gain from the sale of a principal residence.”


And just to be sure, we checked with William Ahern, director of policy and communications for the nonprofit, pro-business Tax Foundation. “Some home sales would see a tax increase under this bill,” Ahern told us, “but it would have to be a second home or a principal residence generating [a gain of] more than $250,000 ($500,000 for a couple).”


Simple Explanation:


The following simple explanation comes from midiShaw:


The tax will affect those sellers of real property who will be otherwise taxed on capital gains under current tax laws. Under current laws, if you sell your primary residence and meet the ‘time ‘ criteria, you are exempt up to $250,000 or $500,000 (filing individually or jointly). Any amount realized OVER that amount is taxable under current tax schedules based on income. As such, this new tax will apparently be added to the current capital gains tax burden IF your income is over $200,000/$250,000 (filing individually or jointly). For those selling second homes and investment properties, the tax, once again, will be applied to the amount of gain realized.


Misundertstood about the taxes being used to support the Health Care Bill, this article should help you greatly as I offer you the following:


Detailed Explanation:


The following also comes from midiShaw in a comment to the above answer.


Beginning in 2013, the national health care reform legislation that became law in March, 2010, imposes a new 3.8 percent tax on certain investment income. The new tax will apply to single filers with incomes over $200,000 and married taxpayers with incomes over $250,000. Under the law, the investment tax provisions in Chapter 2A of the Internal Revenue Code are placed under the heading “Unearned Income Medicare Contribution.” In general, this new Medicare tax will apply to investment income that is subject to income tax, which includes capital gains. Pursuant to IRC Section 1402 (C)(1)(A)(iii), the investment income to which this new tax applies includes “net gain” (to the extent taken into account in computing taxable income) attributed to the disposition of property that qualifies as a capital asset under Section 1221 (capital gains), as well as gains on other property that are considered part of ordinary income.


We offer this just as an explanation. Remember, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.
 ]]> </description>
            <pubDate>Thu, 23 Feb 2012 09:29:37 -0500</pubDate>
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            <guid>http://www.viewdelawarehomes.com/blog/is-there-a-38-tax-in-home-sales-that-go-to-the-health-care-bill.html</guid>
            <link>http://www.viewdelawarehomes.com/blog/is-there-a-38-tax-in-home-sales-that-go-to-the-health-care-bill.html</link>
            <author>Don@viewdelawarehomes.com (Don Williams)</author>
            <title>Is there a 3.8% tax in Home Sales that go to the Health Care Bill?</title>
            <description> <![CDATA[ 
We have received many questions about a possible 3.8% tax which will be put on home sales beginning in 2013. We want to do our best to clarify this situation for everyone. We are not accountants and give you this information just as a simple answer to the misconception. Understand that, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.


A little history on the confusion


Fact Check.org explains it this way:


The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home.


We can understand how this misconception got started. The law itself is couched in highly technical language that only a qualified tax expert can fully grasp. (This provision begins on page 33 of the reconciliation bill that was passed and signed into law.) And it does say the tax falls on “net gain … attributable to the disposition of property.” That would include the sale of a home. But the bill also says the tax falls only on that portion of any gain that is “taken into account in computing taxable income” under the existing tax code. And the fact is, the first $250,000 in profit on the sale of a primary residence (or $500,000 in the case of a married couple) is excluded from taxable income already. (That exclusion doesn’t apply to vacation homes or rental properties.)


The Joint Committee on Taxation, the group of nonpartisan tax experts that Congress relies on to analyze tax proposals, underscores this in a footnote on page 135 of its report on the bill. The note states: “Gross income does not include … excluded gain from the sale of a principal residence.”


And just to be sure, we checked with William Ahern, director of policy and communications for the nonprofit, pro-business Tax Foundation. “Some home sales would see a tax increase under this bill,” Ahern told us, “but it would have to be a second home or a principal residence generating [a gain of] more than $250,000 ($500,000 for a couple).”


Simple Explanation:


The following simple explanation comes from midiShaw:


The tax will affect those sellers of real property who will be otherwise taxed on capital gains under current tax laws. Under current laws, if you sell your primary residence and meet the ‘time ‘ criteria, you are exempt up to $250,000 or $500,000 (filing individually or jointly). Any amount realized OVER that amount is taxable under current tax schedules based on income. As such, this new tax will apparently be added to the current capital gains tax burden IF your income is over $200,000/$250,000 (filing individually or jointly). For those selling second homes and investment properties, the tax, once again, will be applied to the amount of gain realized.


Misundertstood about the taxes being used to support the Health Care Bill, this article should help you greatly as I offer you the following:


Detailed Explanation:


The following also comes from midiShaw in a comment to the above answer.


Beginning in 2013, the national health care reform legislation that became law in March, 2010, imposes a new 3.8 percent tax on certain investment income. The new tax will apply to single filers with incomes over $200,000 and married taxpayers with incomes over $250,000. Under the law, the investment tax provisions in Chapter 2A of the Internal Revenue Code are placed under the heading “Unearned Income Medicare Contribution.” In general, this new Medicare tax will apply to investment income that is subject to income tax, which includes capital gains. Pursuant to IRC Section 1402 (C)(1)(A)(iii), the investment income to which this new tax applies includes “net gain” (to the extent taken into account in computing taxable income) attributed to the disposition of property that qualifies as a capital asset under Section 1221 (capital gains), as well as gains on other property that are considered part of ordinary income.


We offer this just as an explanation. Remember, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.
 ]]> </description>
            <pubDate>Thu, 23 Feb 2012 09:29:34 -0500</pubDate>
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