3.8% Tax to go into Effect in 2013 Applies to Investment Income for Upper Income Taxpayers
Wednesday, February 29, 2012
Incorrect information and rumors abound online regarding the so-called "3.8% Medicare Tax." The 3.8% Tax is NOT a Transfer Tax on Real Estate Sales Here is NARs explanation of the tax that will go into effect in 2013: The health care legislation enacted in 2013 included a new tax that was designed to affect upper income taxpayers. The 3.8% tax is imposed ONLY on those with more than $200,000 of Adjusted Gross Income (AGI) ($250,000 on a joint return). The tax applies to investment income, defined as capital gains, dividends, interest payments, and, for those who own rental property, net... Read more →