September 2012 sizzling copy! The healthcare tax: Facts not fiction
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Will the new healthcare taxes impact you or your clients? Read on to get informed.
Words from the art of taxation
First, we will review some critical definitions in the existing tax law necessary to the understanding of the new healthcare taxes.
Adjusted gross income (AGI) is a taxpayer’s total annual income, profits and losses from all three income categories. Modified AGI includes tax exempt foreign earned income. AGI is not the same as taxable income remaining from AGI after personal deductions, the income amount on which you are taxed.
The three income categories:
- trade or business income, which includes income, profits and losses from the taxpayer’s trade or his owner-operated business, resale inventory and real estate used in the trade or business.
- passive income, which includes profits and losses, are from operations and sales of rental real estate, and from non-owner-operated businesses; and
- portfolio income, which includes profits and losses, including earnings on stocks, interest earned on bonds, savings and trust deeds notes, earnings on land held for profit and management-free long-term property leases. [See Figure 1]
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loading...About The Author
Carrie B. Reyes
is lead writer in charge of the Real Estate Practice and Due Diligence and Disclosures books.
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Does the healthcare law really affect sellers of real estate?
I did NOT realize that 1st Tuesday was another liberal rag until now.
Re-distribution of wealth is not and never has been a solution to any Disadvantaged, Homeless, Hapless, Under Paid individual.
Take an honest look at the old, now defunct, Communist countries — they didn’t work.
There is no such thing as equality in living standards, etc. We may be born legally equal but that is as far as it goes.
Does anyone really want the DMV / IRS running our health care??
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Ahhh, first tuesday finally reveals its true nature as a fellow traveler. There will be no benefits to Californians. Especially, with the central planners deciding who lives and who dies. Nice try first tuesday.
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Dave and AJ — When you allow your biased political views to blind you to the facts, then you lose. First Tuesday isn’t a liberal or a conservative rag (Dave’s word not mine). All they’re doing is presenting the facts. When considering most of their audience is probably Republicans that takes courage. Be thankful there are those that are willing to tell the truth!
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This short statement is your political philosophy:
“The healthcare tax is an issue of the government of a developed country caring for its people. Some have much, most have little. Those with much do not make money based on their labor (with rare exception), while those with little make their money as the fruit of their labor.” This statement is FALSE, only YOUR left wing Marxist philosophy! Read the US Constitution, Federalist papers and writing from Founding Fathers and discover how absurd this is. If you’re Thinking this way, try reading the Communist Manifesto and Russian Constitutions. Yes their were more than one! Those more closely alien with your thinking.
By the way, Republicans as well as Democrats can and have been Progressives and this to the detriment of our country! If you think this rag only speaks the truth, that is only your perception of truth!
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FT is entitled to express opinions and facts. Rather than call names, why not rebut in a civil manner, not like the blogs and forums that exist to allow small minds an outlet. I am a conservative and see the benefits of a medical over haul. In fact, had CAR not had a medical plan I would have been left with no insurance after a cancer operation. You fools can opt out. Move to a state where you can be left with the current situation.
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Robert, you sound like a really bitter person. My short statement has nothing to with my political philosophy, I was just saying First Tuesday wasn’t biased, they were simply stating the facts. On the other hand your comment definitely defines your political philosophy, a philosophy of a disturbed person, a person that needs mental help.
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From this and other articles- particularly the one on income equality and capital gains taxes- it is clear that First Tuesday is supporting a liberal agenda.
This is suicide for a business which relies on Realtor support, since most Realtors are Republicans.
I suppose I will have to take my continuing education business elsewhere now. What a shame!
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Thank you FT for a fair and balanced look at the health care tax issue. Single payer health care is a fixture in most civilized countries, and it is immensely frustrating to read the same old Rush Limbaugh-inspired slogans coming from people who are too lazy to think these issues through for themselves. Universal health care is long overdue in this country, and it is a travesty that the richest country in the world has fallen under the influence of short-sighted idealogues incapable of seeing the big picture.
The polarization of wealth and the influence of Corporations that have no social agenda – only a mandate from shareholders to make as much money as possible – will eventually destroy America unless Government again finds a strong voice and re-establishes regulation over the powerful corporations that control the political debate today.
A large, strong, middle class is the key to more taxpayers, fewer collectors of transfer payments, and long-term lower tax rates for everybody. We must invest in education and create a well-prepared work force with the skills to move from poverty into the tax-paying class.
Congratulations on the courage to take a common sense position, and “damn the DittoHeads”
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I’m really afraid to write a comment on this article in case I catch its lunacy virus. I’ll just repeat the one best Marxist statement…
“Those with much do not make money based on their labor”
So, what do you call the activities of millions of corporate managers and small business owners?
And I just can’t resist commenting on Dan’s, “I was just saying First Tuesday wasn’t biased, they were simply stating the facts”.
OK I’ll just leave it at…REALLY!!!
Then there’s Hal’s, “Corporations that have no social agenda – only a mandate from shareholders to make as much money as possible”.
Duh. Who owns the company? What do they require? Do you know what Fiduciary Responsibility is? Do you know what happens to corporations and their Board if they don’t comply? Yeah, I didn’t think so.
By the way, “A government’s sole method for raising revenue is to tax its people who have earnings” is not true. Individual Income Tax provides only 42% of the Feds confiscations.
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DAN:
So your only argument is to call names. How pathetic! BTW I was not referring to your political philosophy but to the statements I quoted from 1st Tuesday article. As for me, I am a confirmed capitalist and have exceeded beyond my wildest dreams. Also a constitutional conservative that sees this great Republic headed down the drain because of decades of progressive policies and government.
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This really is sad. I came to this article to see the honest facts of how Obamacare would affect the real estate market and instead I get more liberal indoctrination. If I wanted leftist propaganda I’d be reading The New York Times. Not that I’m expecting some right-wing talking points either. But just the pros and cons would be helpfull. I guess I’ll have to continue my Real Estate education elsewhere.
BTW, the idea that we can tax “the wealthiest among us” into oblivion with out affecting “the poorest among us” is complete nonsense. Who do you think employs the poor? In fact I just read an article today that shows how the low-wage work force grew by 30% as the overall job market continues to shrink. With Obamacare we can expect more of this. And in case you’re not aware, low wages don’t make for a good prequal when buying a house. Maybe the author of this preposterous article should share his home with those who can’t qualify to buy a home of their own. Hey, that’s what those of us in developed countries do right?. Share the wealth, right?
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Thank You F T for an informative look at the healthcare situation. I don’t think this is about politics and shouldn’t be, it is about what it means to each of us and how it will affect us when we do our taxes. Mitt Romney only payed 14% last year and he is worth a lot more than most of us. We have no idea what he paid when he wasn’t running for president. So my feeling is that it won’t realy affect the very rich that much because they have always had numerous ways to get around the system. And this is\n’t a comment against republicans I just have no idea how much Obama makes. The fact remains–we are the only developed country that does not have a healthcare in plan for our people. As much as it scares me (I have great healthcare) it is long overdue.
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I am an educated business woman. Ican not see politics here. If you don’t like the law go out and get it changed. First Tuesday is not chosing sides but telling us facts. Maybe, I am tired of the constant political jargon we have endure during this election year.
If you can not express an opinion without name calling or attacking anyone who does not share your belief system I am sorry for you. The founding fathers of our country were progressives who fought so that we could have free speech. Free speech is only free when it is used to express an opinion or belief that is not intended to hurt or harm another.
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To California Girl: Mitt Romney paid millions of taxes every year, how much have you paid? I assume none!
To 1st Tuesday: You should stick to Real Estate education, and not meddle in politics! Your Marxist drivel is repugnant! Remember who your clients are, real estate agents, mostly capitalists. Few of them will appreciate your efforts to give them an education in Communism!
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Mark
FT’s business is not going to hurt. I’m a realtor, I sell $20M a year & I’m a democrat…. Go figure !!!
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Just a comment on the law– Pelosi said pass this law and you will know what is in it. I do want to be required to buy health insurance; just as I never wanted to contribute to social secuirty; wanted my own fund for my retirement. I hope that is civil enough. P.S. How many have really read the 1000 pages or more of the obamatax?
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This article was good summary of the tenets of the new law. I DON’T have time to read the “1000 pages” or so. So I appreciate JUST the facts. I need to know how the law affects my real estate customers, both rich and poor. Why can’t you dittoheads just take it as information, instead of irrationally reacting and looking like a bunch of dodos (extinct birds, if you don’t know)? Would information be so damaging to your basic beliefs that you cannot afford to just read something from an unbiased point of view? I am neither progressive nor conservative, I’m just a pragmatic business person. First Tuesday is the messenger, not the entity that passed the law. Most of the time, they do a pretty good job of keeping us informed.
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