New Unearned Income Medicare Tax - Part of US Health Care Reform Bill 2010

The new US Health Care Reform Bill passed and signed into law earlier this month by President Obama created a 3.8 percent Medicare tax on unearned income for high-income households.

 

This new Medicare tax is for all unearned net investment income and includes interest income, dividends, rents, and capital gains.

 

This new Medicare tax will not impact the capital gains exclusion for principal home residences ($250,000 for individuals/$500,000 for married couples). The 3.8 percent tax only will apply to taxable gains above this exclusion.

 

This new tax will take effect on Jan. 1, 2013, and will be applicable to high-income taxpayers with adjusted gross incomes of $200,000 or more for individuals, or $250,000 or more for married couples.

Source:  California Association of REALTORS.

 

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Harrison K. Long, REALTOR® & broker, Explore Group, Coldwell Banker Previews, Irvine, CA.  CA DRE #01410855.  ExploreProperties@gmail.com.  Lawyer member, California State Bar Association #69137.  National Association of Realtors, California Association of Realtors, and Orange County Association of Realtors.  Current Chairperson of Local Government Relations south committee at OCAR.org.  Newport Beach and Irvine area Realtor, broker agent and property information source. 

This is for information only.  Be careful with this and any provision of law that will impact your income tax situation.  Always consult with your certified public accountant or income tax professional.

Posted via email from Explore OC Homes