The U.S. congress passed and President Obama signed the national Health Care Reform bill this week. Landlords will be intrigued to see their tax bill in 2010 with what this new law does to income property owners. Bloomberg enlightens us:
Democratic congressional leaders would raise to 3.8 percent the Obama administration’s proposed new Medicare tax on investment income to generate an estimated $210 billion to help fund a health-care overhaul plan.
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The new tax would apply to income from interest, dividends, annuities, royalties, capital gains and rents for individuals who earn more than $200,000 annually and joint filers reporting more than $250,000, according to the legislation.
So total rental revenue (not just profit) is now fair game for additional taxation for those earning $200,000 per year. So when will that $200,000 limit lower to $100,000 or $50,000? Keep your eyes peeled.
It looks like rents will be going up or property values will be going down to offset this new tax.
How can we thank Uncle Sam for this? You decide.
At what point will the Democratic Party call themselves what they really are? They are the Socialist Progressive Party. There are only a few real Democrats left, like Matheson.
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