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Have you seen the absolutely ridiculous tax that our fearless leader is going to be hitting real estate professionals and normal homeowners with in the very near future? If you are either, buying or selling homes in any fashion, this will apply to you! Listen in to this week’s Friday Coffee break as I cover this buried real estate tax that will affect you.
We also cover whether you can buy and sell a Fannie Mae backed bank owned property within 90 days, whether or not a short sale property needs to be listed when making an offer, whether or not you can withdraw a short sale offer after a BPO and if you use the same entity when doing so and more.  Visit www.FridayCoffeeBreak.com for more real estate videos from Patrick Precourt.

10 Responses to “All Real Estate Agents and Investors Screwed by Obama and Pelosi!”

  1. Allan

    09. Jul, 2010

    Pat,

    Just to clear things up on the 3.8% tax. It is not a sales tax. It is an income tax. It is based on the profit made on a transaction, not the sales price. Check out http://www.factcheck.org/2010/04/a-38-percent-sales-tax-on-your-home/ for a good explanation.

    Reply to this comment
    • Rich

      09. Jul, 2010

      The exceptions stated in that article apply to owner occupied occupied homes. The poor investor, or rehabber is going to have an “additional” tax on his profits.

      Reply to this comment
  2. Craig Longsderff

    09. Jul, 2010

    Auctions, let’s talk auctions. What is your experience with auctions? Have you attended recently? Did you make money? If not, do you know of anyone that has and consistently makes money at auctions? Any area of the country would be fine. I live in & attend auctions regularly in NH.

    Reply to this comment
  3. Roger Anderson

    09. Jul, 2010

    Please keep up your opposition to the marxist regime in the “whitey” house. Our liberties and our freedom are being taken away from us in large chunks until we will have none left. Unfortunately they will not stop until they have outlawed real estate investing, since we are the solution and they can’t have that.

    Reply to this comment
  4. Juan

    14. Jul, 2010

    There is also another hidden tax in that bill. I have yet to search and cite this information but I am certain about it since I did read about it in another article.

    It comes like this. Any business or person will need to 1099 another business or person, for any thing that is purchased over $ 500.00 ( I may have the amount incorrect but the idea is that it is a small, recurring amount). Of course, if you get the 1099, then you pay income tax on this amount. It increase taxes on all exchanges over this dollar amount, and it also increase the burden of tracking all this paperwork.

    For example, if you pay for a technician to clean our your AC system at your home, and the bill is $1200.00 Well, you now need to 1099 the AC company and issue the year end report for any product or service over the $500.00 dollar amount.

    You pay a mechanic, 1099 them
    You pay for supplies,like an Ipad and a printer. You issue a 1099.
    You buy supplies for your business, 1099 them.

    You also need to report at the end of year for all the 1099 that you issued all year!!!

    Yes — for everything over $ 500.00 or whatever the dollar limit is stated in the law. Yes — this is true. I may a bit off on the dollar amount but this will take affect as of 2011.

    God help us — we will be taxed into poverty now.

    Reply to this comment
    • Gary Brown

      17. Aug, 2010

      It’s a $600 limit and has actually been in effect for at least 25 years. Of course, it started at $500 then went to $600 about 15 years ago.
      If you weren’t 1099ing individuals you paid over $600, you have been breaking the law. Every so often you hear about the ‘Nanny’ Tax, where Joe Schmoe doesn’t declare this payments to a housekeeper or child sitter (usually a politician). That’s this 1099 business.
      Hope this helps,
      Sincerely,
      Gary Brown

      Reply to this comment
  5. Ben Roembke

    14. Jul, 2010

    Pat,

    Keep on saying the truth! We have to stop nobama and his socialist agenda before he and the democrats spend what little money we have left and are forced to raise taxes on ALL Americans.

    Health care is a load of crap and everyone who has done any research on it knows it. The cost of the program has exceeded the initial CBO estimate (a couple months ago) before it even started!

    Reply to this comment
  6. Greg

    16. Jul, 2010

    Hey Pat,
    I value your knowledge and expertise on real estate and short sales, so I am dismayed to see and hear you rant and rave foolishly about a topic you are grossly misinformed about – the 3.8% tax. You came across as one of those hate-talk radio jocks spewing misinformation while pounding their chests in a phony patriotic manner.

    I think you made two big mistakes:

    1) You failed to do your own due diligence – something you preach to others
    2) You riled up some of your rabid, hysterical groupies; among them,the racist Roger and his whining buddy, Ben, who don’t understand the definitions of Marxism and socialism, but simply regurgitate one-liners before they check the facts. Refer to Allan’s “Fact Check” website reference above.

    Here is a post responding to a Spokane, WA newspaper article written by Paul (the Guppy brain) Guppy – an alleged expert, who, in reality, is probably a hired propagandist.

    ajconr0 on July 05 at 11:06 a.m.
    “I was forwarded this story from someone trying to help inform friends and family of evil Obama and how he’s taking all our money. Quickly I realized how ridiculous and without merit it was and took two minutes to google this tax and got some info on it:”
    http://www.realtor.org/small_business_health_coverage.nsf/Pages/health_ref_faq_med_tax?OpenDocument

    He goes on to say:
    “Wake up people. Do a little research and quit believing everything that an idiot from some policy research institute sends for an opinion piece. People that work for these places are either doing it for free, which expains how much their opinion is worth, or getting funding from those that would benefit spreading such garbage.”

    I would only add to that: do your “due diligence” or please get the hell off of the internet – it’s polluted enough already.

    Reply to this comment
    • Gary Brown

      17. Aug, 2010

      Son, you are missing the whole point. The real question is… WHY DO WE NEED MORE TAXES?

      For entitlements and free give-aways for political power.

      End of story.

      Reply to this comment
    • Patrick Precourt

      21. Aug, 2010

      Greg,
      I appreciate your clarification on the specifics of this additional taxation on the real estate industry…which by the way, is just barley hanging on by a thread and has some tough tough roads ahead.

      But dont think for a second that this changes AT ALL my main point….more of EVERYBODYS money going back to the goverment.
      So to be clear, who does this taxation really attack?

      1. The wealthy and
      2. small business.
      …..and all Americans!!!!!!

      Who is the wealthy comprised of? To a large degree…Small business Entrepreneurs!!!

      Who employ’s the majority of ALL Americans?
      SMALL BUISNESS ENTREPRENUERS!!!
      What happens when you tax small business entrepreneurs in to extinction?
      THEY GO OUT OF BUISNESS!!!
      UNEMPLOMENT continues…..and this is not unemployment of the wealthy….it of EVERYBODY!!!

      Americans need to work, and most are willing to do so.
      We would not need these constant insane tax increases if we stopped our dam spending.

      Stop spending, reduce taxes, promote healthy small business growth, no hand outs.

      Lets work on our independency, not our dependency.
      Jobs will be created in a sustainable capacity and americans will be productively working again.
      Greg, taxes can be hidden and masqueraded any way conceivable but the bottom line, the cost gets pasted along to all.
      EVERBODY will pay the price for this tax hike, directly or indirectly.

      And yes,
      if you are a small business owner, who buys and sells real estate, regardless of your income, you are going to pay dearly on this one.

      Reply to this comment

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