I don’t play an accountant on TV

Coming after YOU, sucker!

But you might want to consult (a real) one if you’re a Greenwich homeowner trying to decide whether to sell this year or next. Apparently one of those details in the Pelosi “you have to pass it to know what’s in it” Obamacare bill is a 3.8% hike on capital gains. That’s not a tax on the middle class, of course, because only the rich pay capital gains, but if you aren’t feeling as generous as the Democrats want you to feel, maybe sell this year?

WSJ:

It really is happening.

Until this week, investors were waiting to see what the Supreme Court would do about the 3.8 percentage-point surtax on investment income, part of President Obama’s health-care overhaul. The Internal Revenue Service hasn’t yet released guidance on the new tax.

So when the court affirmed the law on Thursday, investors—and tax advisers—started scrambling.

5 Comments

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5 responses to “I don’t play an accountant on TV

  1. I guess it will hinge upon how they define “investment income” for the purposes of this law.

  2. AJ

    You don’t need an accountant to tell you the market is corrupt or, at the very least, broken: [...] High-frequency trading firms are drawing scrutiny from U.S. regulators seeking evidence that they may be distorting market prices by conducting transactions with themselves, said two people with knowledge of the matter.

    So-called wash trades, in which a party buys a contract from itself, could be executed inadvertently by firms with multiple algorithms active in the same stock or derivative, said the people, who requested anonymity because the review isn’t public. Such trades, which can alter the price of shares if they are executed above or below market rates, would be illegal if deemed intentional efforts to manipulate stocks. [...]

    http://www.bloomberg.com/news/2012-06-22/wash-trading-by-high-frequency-firms-said-to-face-u-s-scrutiny.html

  3. ML

    I don’t like Obamacare or the POTUS but don’t get too bent out of shape on this tax. It’s only on capital gains. Who has capital gains on their homes these days?? What’s screwed up is that you get zero relief for losses. It’s a lose-lose for the homeowner. I lost about $400k selling my old house in 2010 and that loss has vanished. Now if I sell my current for a gain (doubtful) I will pay cap gains, 20% next year plus 3.8% Obama tax.

  4. Peg

    I saw the clip of Pelosi last night on TV where she utters her famous “we have to pass it to know what’s in it” proclamation. You would think that one sentence alone would be enough to drum her out of Congress – but no. Seems to be standard operating procedure way too much these days.

  5. Balzac

    It’s a lot worse than you think. From the Wall St. Journal; “After year-end, under current law, the top dividend tax rate will rise to 43.4% from 15%. That’s not only because the temporary low 15% rate granted under the 2001 Bush tax cuts will revert to the prior rate of 39.6%. In addition, a provision of ObamaCare slaps a 3.8% surtax on all forms of investment income, including dividends—the resulting total is 43.4%.” We can add a few percentage points more for CT taxes.

    The Obama/Democrat jihad against investing will produce less investment and therefore less jobs and less innovation. These are the continuing outcomes of class-warfare economic policy.