Obama vs. McCain – Colorado – Real Estate

9 Sep

Obama vs. McCain – Colorado – Real Estate

I was looking at the following as part of due diligence being that I am Colorado Realtor as well as a Colorado Home Owner in the United States of America. The following points are things I think we need to be aware of from first time homeowners, to real estate investing and buying up or downsizing. The man who wins the White House could effect how we think about real estate and home ownership and how we do business. How does it effect you??

CAPITAL GAINS TAX
MCCAIN	0% on home sales up to $500,000 per home (couples). McCain does not propose any change in existing home sales income tax.
OBAMA	28% on profit from ALL home sales. (How does this affect you? If you sell your home and make a profit, you will pay 28% of your gain on taxes. If you are heading toward retirement and would like to down-size your home or move into a retirement community, 28% of the money you make from your home will go to taxes. This proposal will adversely affect the elderly who are counting on the income from their homes as part of their retirement

INHERITANCE TAX

MCCAIN

- 0% (No change, Bush repealed this tax)

OBAMA

Restore the inheritance tax

Many families have lost businesses, farms, ranches, and homes that have been in their families for generations because they could not afford the inheritance tax. Those willing their assets to loved ones will only lose them to these taxes.

NEW TAXES PROPOSED BY OBAMA
New government taxes proposed on homes that are more than 2400 square feet.

In addition we could be looking at other changes as well take a look:

INHERITANCE TAX

MCCAIN

- 0% (No change, Bush repealed this tax)

OBAMA

Restore the inheritance tax

DIVIDEND TAX
MCCAIN	15% (no change)
OBAMA	39.6% – (How will this affect you? If you have any money invested in stock market, IRA, mutual funds, college funds, life insurance, retirement accounts, or anything that pays or reinvests dividends, you will now be paying nearly 40% of the money earned on taxes if Obama becomes president. The experts predict that ‘Higher tax rates on dividends and capital gains would crash the stock market, yet do absolutely nothing to cut the deficit.’)

INCOME TAX

MCCAIN

(no changes)

Single making 30K – tax $4,500
Single making 50K – tax $12,500
Single making 75K – tax $18,750
Married making 60K- tax $9,000
Married making 75K – tax $18,750
Married making 125K – tax $31,250

OBAMA (reversion to pre-Bush tax cuts)

Single making 30K – tax $8,400
Single making 50K – tax $14,000
Single making 75K – tax $23,250
Married making 60K – tax $16,800
Married making 75K – tax $21,000
Married making 125K – tax $38,750

In addition to those we should consider the following additions and brace ourselves…..

Obama Proposals:

New gasoline taxes (as if gas weren’t high enough already) New taxes on natural resources consumption (heating gas, water, electricity) New taxes on retirement accounts, and last but not least….New taxes to pay for socialized medicine so we can receive the same level of medical care as other third-world countries!!!

As a small business owner how does one afford to business, invest, buy or sell a home let alone heat one on the economic plans above? If you think the current system and plan is not working and the foreclosure rates are high now. Wait until some of these changes are put into place.

You can verify this information at;

http://money.cnn.com/news/specials/election/2008/index.html

http://www.cnn.com/ELECTION/2008/issues/issues.taxes.html

http://elections.foxnews.com/?s=proposed+taxes

http://bulletin.aarp.org/yourworld/politics/articles/mccain_obama_offer_different_visions_on_taxes.html

http://blog.washingtonpost.com/fact-checker/candidates/barack_obama/

http://blog.washingtonpost.com/fact-checker/candidates/john_mccain/

David Richins, GRI, ABR, e-Pro

Direct: 303.882.7706

Fax: 303-597-5522

Email: derichins@yahoo.com

Web: www.RichinsHomesTeam.com