This document provides examples to help explain how the new 3.8% tax on investment income resulting from the Affordable Care Act would apply to different real estate transactions and income sources. The tax applies to individuals with adjusted gross income over $200,000 and joint filers over $250,000. It is imposed on unearned income including capital gains, dividends, interest, and net rental income. The examples illustrate how the tax is calculated for various capital gain scenarios, rental properties, and mixed income sources. An additional 0.9% tax also aims to fund Medicare but applies to earned income over the thresholds.
The Impact of the Tax Cuts & Jobs Act on High Tax Bracket Individuals - Show ...gppcpa
Objective: To quantify the effects of the Tax Cuts & Jobs Act for taxpayers in the highest individual tax bracket; to quantify the effects of the increase in the lifetime estate and gift tax exemption for taxpayers at all levels of wealth; and to identify the challenges and opportunities available for taxpayers as a result of these changes.
The Impact of the Tax Cuts & Jobs Act on High Tax Bracket Individuals - Show ...gppcpa
Objective: To quantify the effects of the Tax Cuts & Jobs Act for taxpayers in the highest individual tax bracket; to quantify the effects of the increase in the lifetime estate and gift tax exemption for taxpayers at all levels of wealth; and to identify the challenges and opportunities available for taxpayers as a result of these changes.
Partnership Sale of Asset & Buy-out vs Redemption of Partner InterstWilliam Bryant
This is a Financial Model that illustrates the Tax Effect (current law) on the Sale of Depreciated Property owned by a Partnership. As well as to compare and contrast the Tax Effect of a departing partner if their partner interest was Buy-out vs Redemption of that Partner Interest.
Presentación de Birgitta Persson, Secreataria General de TEH [Trans Europe Halles] red europea de centros culturales independientes en el marco de la jornada #lantegiaksarean desarrollado en Pabellon6 de ZAWp el 13 de octubre de 2011.
Politicians will face major voter backlash if they advocate cuts in Social Security benefits or choose deficit reduction over job creation, according to a poll by Greenberg Quinlan Rosner commissioned by the Campaign for America’s Future and Democracy Corps, with support from MoveOn.org; the American Federation of State, County and Municipal Employees, and the Service Employees International Union.
We are a firm dedicated to the design and comprehensive development of critical areas with high added value. We are part of a group supported by international capital, based in Houston, Texas (USA).
We seek to be the innovation and creativity benchmark in the national and international markets by providing solutions that satisfy the most demanding of clients. We offer leading technology, competitive prices and high quality standards, while always considering people’s security and well-being.
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The Economic Outlook is an internationally respected report on the state of the global economies with an extra focus on the Nordic markets, as well as the Baltic, Polish, Russian and key emerging markets plus the global oil and commodity markets. It is published twice a year by the renowned team of analysts and economists at Nordea Markets and supplemented with an additional two global and Nordic updates. It is published in English as well as the four Nordic languages.
Partnership Sale of Asset & Buy-out vs Redemption of Partner InterstWilliam Bryant
This is a Financial Model that illustrates the Tax Effect (current law) on the Sale of Depreciated Property owned by a Partnership. As well as to compare and contrast the Tax Effect of a departing partner if their partner interest was Buy-out vs Redemption of that Partner Interest.
Presentación de Birgitta Persson, Secreataria General de TEH [Trans Europe Halles] red europea de centros culturales independientes en el marco de la jornada #lantegiaksarean desarrollado en Pabellon6 de ZAWp el 13 de octubre de 2011.
Politicians will face major voter backlash if they advocate cuts in Social Security benefits or choose deficit reduction over job creation, according to a poll by Greenberg Quinlan Rosner commissioned by the Campaign for America’s Future and Democracy Corps, with support from MoveOn.org; the American Federation of State, County and Municipal Employees, and the Service Employees International Union.
We are a firm dedicated to the design and comprehensive development of critical areas with high added value. We are part of a group supported by international capital, based in Houston, Texas (USA).
We seek to be the innovation and creativity benchmark in the national and international markets by providing solutions that satisfy the most demanding of clients. We offer leading technology, competitive prices and high quality standards, while always considering people’s security and well-being.
We are passionate about what we do, and we seek to show our best in each of our projects.
The Economic Outlook is an internationally respected report on the state of the global economies with an extra focus on the Nordic markets, as well as the Baltic, Polish, Russian and key emerging markets plus the global oil and commodity markets. It is published twice a year by the renowned team of analysts and economists at Nordea Markets and supplemented with an additional two global and Nordic updates. It is published in English as well as the four Nordic languages.
With content from the National Association of REALTORS®, VAR has put together a simple PPT presentation to allow brokers to explain to agents the myths and realities of the 3.8% 'real estate' tax.
With the elimination of the personal exemption in 2018, some large families could experience increased state-level taxes. In states where families trend to larger sizes, such as Utah, the State Tax Commission anticipates tens-of-millions in surplus revenues as a result of the personal exemption elimination.
Section 199A of the Internal Revenue Code provides many taxpayers a deduction for qualified business income from a qualified trade or business operated directly or through a pass-through entity.
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Omaxe Sports City Dwarka stands out as a premier residential and recreational destination, offering a blend of luxury and sports-centric living. Located in the thriving area of Dwarka, this project by Omaxe Limited is designed to cater to modern lifestyle needs while promoting a healthy, active living environment.
Sense Levent Kagithane Catalog - Listing TurkeyListing Turkey
Sense Levent offers a luxurious living experience in the heart of Istanbul’s vibrant Levent district.
This cutting-edge development seamlessly integrates modern design with natural elements, featuring live evergreen plants maintained by an advanced irrigation system, ensuring lush greenery year-round.
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Early investors can take advantage of discounted units during the construction phase, with an expected capital appreciation of +45% USD upon completion. Property Turkey provides comprehensive rental management services, ensuring a seamless and profitable investment experience.
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Scanning tenants in NYC requires a thorough and compliant approach to ensure you find reliable renters. For a positive rental experience, consider hiring a property management service. Belgium Management LLC specializes in NYC rental property management and tenant relationship management. We prioritize tenant satisfaction, making us a trusted name in New York property management. Our dedicated team ensures tenants feel valued and supported throughout their lease.
Urbanrise Paradise on Earth - Unveiling Unprecedented Luxury in Exquisite Vil...JagadishKR1
Immerse yourself in the epitome of luxury living at Urbanrise Paradise on Earth. These opulent 4 BHK villas, nestled off the prestigious Kanakapura Road in Bangalore, redefine elegance and sophistication. With meticulous craftsmanship, breathtaking design, and unparalleled amenities, Urbanrise Paradise on Earth offers a sanctuary where every moment is infused with luxury and serenity. Experience a life of grandeur and indulgence at this exclusive residential enclave.
One FNG by Group 108 Sector 142 Noida Construction UpdateOne FNG
One FNG by Group 108 is launching a new commercial project in Sector 142 Noida. Office space and high street retail shops on the FNG and Noida Expressway. For more information visit the website https://www.onefng.com/
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdfListing Turkey
Tersane Suites Residences is a luxurious real estate project located in the heart of Istanbul, next to the beautiful Golden Horn. This unique development offers hotel concept residences with Rixos management, making it the perfect choice for both homeowners and investors.
The Tersane Suites Residences offers a wide range of options, from studio apartments to spacious four-bedroom units, all designed to the highest standard. The suites are finished with high-quality materials and feature modern, open-plan living spaces, fully-equipped kitchens, and large balconies with stunning views of the city and sea.
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The Tersane Suites Residences also offers a great opportunity for investors, as it provides a rental guarantee program. This means that investors can enjoy a steady income stream, with the peace of mind that their property is being managed by a reputable and experienced team.
The location of Tersane Suites Residences is also unbeatable, with easy access to the city’s main transportation links and within close proximity to the historic center, making it the perfect base for exploring all that Istanbul has to offer.
500 acres of brilliance await you here at Riverview City which offers modern living, effortless convenience, and a beautiful natural setting. It is a mega township by Magarpatta City in Loni Kalbhor, Pune. Enjoy easy access to work, schools, and fun while experiencing a perfect work-life balance.
Visit - magarpattacity.developerprojects.in
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szet...Volition Properties
=== Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szeto) ===
Ever been curious about Real Estate Investing in the US?? At Volition, for the past 14 years, we have been focused on helping investors invest in over $250M of real estate and generate $100M of wealth in the Toronto market, but we are always open to learning more about other business models and learning from other investors.
The US has always been an intriguing market to invest in. But the US is a big place… if you’re interested in investing in the US, you probably have a lot of questions, like:
☑️ Specifically WHERE should you invest?
☑️ What are the best markets to invest in and why?
☑️ How much are property prices there?
☑️ What are the returns like?
☑️ What is cashflow like?
☑️ Compared to investing in Toronto or other cities in Ontario, what are the benefits / tradeoffs?
☑️ What ownership structure should I use?
☑️ What are the tax implications?
☑️ Can I get financing?
☑️ What are tenants like?
Enter Erwin Szeto, a longtime friend of Volition. Since 2005, Erwin Szeto and his team have navigated the challenging landscape of being landlords in Ontario. Now, they are shifting their focus and guiding their clients' investments toward the more landlord-friendly environment of the USA. This decision comes after assisting Canadian clients in transacting over $440,000,000 in income properties. Faced with issues like affordability constraints, tenant-friendly laws, rent control, and rental licensing in Canada, Erwin sees a clear opportunity in the U.S. Here, there is a significant influx of investments leading to the creation of high-paying manufacturing jobs. Erwin and his clients are poised to capitalize on these opportunities where landlord rights are stronger and there is no rent control.
To facilitate this transition, Erwin has partnered with and become a client of SHARE, a one-stop-shop U.S. Asset Manager. Founded by Canadians for Canadians, SHARE enables as passive an ownership experience as possible for landlords in the U.S., while still maintaining direct, 100% ownership.
Erwin is “Making Real Estate Investing Great Again”!!
Website: https://www.infinitywealth.ca/
Facebook: https://www.facebook.com/iwinrealestate and https://www.facebook.com/ErwinSzetoOfficial
Podcast: https://www.truthaboutrealestateinvesting.ca/
Instagram: https://www.instagram.com/iwinrealestate/ and https://www.instagram.com/erwinszeto/
Elegant Evergreen Homes - Luxury Apartments Redefining Comfort in Yelahanka, ...JagadishKR1
Experience unmatched luxury at Elegant Evergreen Homes, offering exquisite 2, 3, and 4 BHK apartments in the serene locality of Yelahanka, Bangalore. These meticulously crafted homes blend modern design with timeless elegance, providing a harmonious living environment. Enjoy top-tier amenities and a prime location, making Elegant Evergreen Homes the ideal choice for discerning homeowners.
Referans Bahcesehir which is being constructed, in the center of the most regional destination as Bahçeşehir, shines out with its central location and unique landscape including social facilities such as a fitness center, sauna, sports facilities, children’s playground and recreational areas.
Not only drawing attention for immediate surroundings including commercial centers and private schools but also providing the easily accessible location with closeness to Tem Highway and connection roads, ongoing construction of 3rd Bridge Connection roads and Metro Projects
Bahcesehir is a rising value in the great city of Istanbul… Located at a new transportation junction in the northwest of the City… Located at such a spot that the access roads for the 3rd bridge and for the 3rd Airport will reach the region in 2016. The Marmaray and the Subway will extend all the way to Referans Bahcesehir respectively in 2018 and 2019.
465 flats and 34 stores are designed with an outstanding approach and arranged with a unique perspective offering the following options: 1 plus 1, 2 plus 1, 3 plus 1, 3.5 plus 1, 4 plus 1, and 4.5 plus 1. It is planned so as to safeguard you and your loved ones based upon a modern, technological safety approach. As you experience the joy and luxury here, you will be content and feet at ease.
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https://listingturkey.com/property/referans-bahcesehir/
The KA Housing - Catalogue - Listing TurkeyListing Turkey
Welcome to KA Housing, a distinguished real estate development nestled in the heart of Eyüpsultan, one of Istanbul’s most promising districts.
Just 10 minutes from the bustling city center, Eyüpsultan offers a serene escape with the convenience of urban living. The direct metro line ensures seamless connectivity to all parts of Istanbul, making it an ideal location for residents who seek both tranquility and vibrancy.
KA Housing boasts unparalleled accessibility, with proximity to Istanbul Airport only 30 minutes away, facilitating easy international travel. Effortless city access is guaranteed by direct metro and transportation links to Istanbul’s cultural and commercial hubs. Quick access to key metro lines connects you to every corner of the city within minutes, making commuting and exploring the city hassle-free.
The development offers luxurious living spaces with a range of unit layouts from 1+1 to 4+1, designed with meticulous attention to detail. Each unit features balconies or terraces, providing stunning vistas of Istanbul and enhancing the living experience. High-quality materials and superior craftsmanship ensure durability and elegance, while sound-proof insulation and high ceilings (2.95 m) offer comfort and sophistication.
Residents of KA Housing enjoy exclusive on-site amenities, including a state-of-the-art gym, outdoor swimming pool, yoga area, and walking paths. Entertainment options abound with a private cinema, children’s playground, and a variety of dining options including a café and restaurant. Security and convenience are paramount with 24/7 security, a dedicated carpark garage, and an IP intercom system.
KA Housing represents a prime investment opportunity with limited availability in a high-demand area, ensuring enduring value and potential for lucrative returns. Homes in this development provide exceptional value without compromising on quality, offering affordable luxury for discerning buyers. The construction is of the highest quality, built to the latest seismic and disaster resistance standards, ensuring safety and resilience.
The community and surroundings of KA Housing are enriched by close proximity to prestigious universities such as Haliç University, Bilgi University, and Istanbul Ticaret University, making it an ideal location for students and academics. The development is adjacent to the Alibeyköy stream leading into the Halic waters, offering serene natural escapes amidst lush greenery. Residents can enjoy the cultural richness of the area, surrounded by historical and cultural landmarks that blend leisure, nature, and culture seamlessly.
https://listingturkey.com/property/the-ka-housing/
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Flat available for sale
Location- Tupudana, Ranchi
Savitri enclave
Area- 3BHK
Rate- 4000/sq.ft.
Super Build Up Area-1629 sq.ft.
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Possession year (Handover year)- Dec 2025
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1. ★★★★★★★★★
The 3.8% Tax
Real Estate Scenarios & Examples
Effective January 1, 2013
2. Intro
Beginning January 1, 2013, a new 3.8 percent tax on some investment income
will take effect. Since this new tax will affect some real estate transactions, it is
important for REALTORS® to clearly understand the tax and how it could impact
your clients. It’s a complicated tax, so you won’t be able to predict how it will
affect every buyer or seller.
To get you up to speed about this new tax legislation, the NATIONAL
ASSOCIATION OF REALTORS® has developed this informational brochure.
On the following pages, you’ll read examples of different scenarios in which
this new tax — passed by Congress in 2010 with the intent of generating
an estimated $210 billion to help fund President Barack Obama’s health care
and Medicare overhaul plans — could be relevant to your clients.
Understand that this tax WILL NOT be imposed on all real estate transactions,
a common misconception. Rather, when the legislation becomes effective in 2013,
it may impose a 3.8% tax on some (but not all) income from interest, dividends,
rents (less expenses) and capital gains (less capital losses). The tax will fall only
on individuals with an adjusted gross income (AGI) above $200,000 and couples
filing a joint return with more than $250,000 AGI.
★
3. New Tax Rate:
Applies to: Individuals with adjusted gross income (AGI) above $200,000
Couples filing a joint return with more than $250,000 AGI
Types of Income: Interest, dividends, rents (less expenses), capital gains
(less capital losses)
Formula: The new tax applies to the LESSER of
Investment income amount
Excess of AGI over the $200,000
or $250,000 amount
★
4. Example 1
Capital Gain: Sale of a Principal Residence
John and Mary sold their principal residence and realized a gain of $525,000.
They have $325,000 Adjusted Gross Income (before adding taxable gain).
The tax applies as follows:
AGI Before Taxable Gain $325,000
Gain on Sale of Residence $525,000
Taxable Gain (Added to AGI) $25,000 ($525,000 – $500,000)
New AGI $350,000 ($325,000 + $25,000 taxable gain)
Excess of AGI over $250,000 $100,000 ($350,000 – $250,000)
Lesser Amount (Taxable) $25,000 (Taxable gain)
Tax Due $950 ($25,000 x 0.038)
NOTE: If John and Mary had a gain of less than $500,000 on the sale of their residence,
none of that gain would be subject to the 3.8% tax. Whether they paid the 3.8% tax
would depend on the other components of their $325,000 AGI.
Example 2
Capital Gain: Sale of a Non-Real Estate Asset
Barry and Michelle inherited stocks and bonds that they have decided to liquidate. The sale
of these assets generates a capital gain of $120,000. Their AGI before the gain is $140,000.
The tax applies as follows:
AGI Before Capital Gain $140,000
Gain on Sale of Stocks and Bonds $120,000
New AGI $260,000
Excess of AGI over $250,000 $10,000 ($260,000 – $250,000)
Lesser Amount (Taxable) $10,000 (AGI excess)
Tax Due $380 ($10,000 x 0.038)
NOTE: In this example, only $10,000 of their capital gain is subject to the 3.8% tax.
If their gain had been smaller (less than $110,000), they would not pay the 3.8%
tax because their AGI would be less than $250,000.
★
5. Example 3
Capital Gains, Interest and Dividends: Securities
Harry and Sally have substantial income from their securities investments. Their AGI before
including that income is $190,000. Their investment income is listed below.
The tax applies as follows:
Interest Income (Bonds, CDs) $60,000
Dividend Income $75,000
Capital Gains $10,000
Total Investment Income $145,000
New AGI $335,000 ($190,000 + $145,000)
Excess of AGI over $250,000 $85,000 ($335,000 – $250,000)
Lesser Amount (Taxable) $85,000 (AGI excess)
Tax Due $3,230 ($85,000 x 0.038)
Example 4
Rental Income: Income Sources Including Real Estate Investment Income
Hank has a “day job” from which he earns $85,000 a year. He owns several small apartment
units and receives gross rents of $130,000. He also has expenses related to that income.
The tax applies as follows:
AGI Before Rents $85,000
Gross Rents $130,000
Expenses (Including depreciation and debt service) $110,000
Net Rents $20,000
New AGI $105,000 ($85,000 + net rents)
Excess of AGI over $200,000 $0
Lesser Amount (Taxable) $0
Tax Due $0
NOTE: Even though Hank’s combined gross rents and day job earnings exceed $200,000,
he will not be subject to the 3.8% tax because investment income includes NET,
not gross, rents.
★
6. Example 5
Rental Income: Rental Income as Sole Source of Earnings –
Real Estate Trade or Business
Henrietta’s sole livelihood is derived from owning and operating commercial buildings. Thus, these assets
are treated as business property and not as investment property. Her income stream is outlined below.
The tax applies as follows:
Gross Rents $750,000
Expenses (Including depreciation and debt service) $520,000
Net Rents $230,000
New AGI (Net rental income) $230,000
Excess of AGI over $200,000 $30,000
Lesser Amount (Taxable) $0 (No investment income)
Tax Due $0
Henrietta’s rental income is from a trade or business so it is NOT treated as investment income.
Thus, she is NOT subject to the 3.8% investment income tax.
NOTE: The health care bill created a separate tax for high wage and self-employment
business income. Thus, Henrietta IS subject to the new 0.9% (0.009) tax on earned
income, because some portion of the net rents represents her compensation for
operating the commercial buildings. See additional background below.
For this example, assume that the total net rents are her sole compensation. The tax
on this earned income would be as follows:
AGI $230,000
Excess of AGI over $200,000 $30,000
Tax Due $270 ($30,000 x .009)
NOTE: Depending on how Henrietta has organized her business (S Corp, LLC or sole propri-
etor), she might be able, for example, to pay herself $175,000, leaving the remaining
$55,000 in the business in anticipation of making improvements the following year.
In that case, because her AGI of $175,000 is less than $200,000, she will owe neither
the unearned income tax (3.8%) nor the earned income tax (0.9%).
★
7. Example 6
Sale of a Second Home with No Rental Use (or no more than 14 days rental)
The Bridgers own a vacation home that they purchased for $275,000. They have never rented it to others.
They sell it for $335,000. In the year of sale they also have earned income from other sources of $225,000.
The tax applies as follows:
Gain on Sale of Vacation Home $60,000 ($335,000 – $275,000)
Income from Other Sources $225,000
New AGI $285,000 ($60,000 + $225,000)
Excess of AGI over $250,000 $35,000 ($285,000 – $250,000)
Capital Gain $60,000
Lesser Amount (Taxable) $35,000 (AGI excess)
Tax Due $1,330 ($35,000 x 0.038)
NOTE: If the Bridgers rent the home for 14 or fewer days in the course of a year, the rental
income is non-taxable and the results in the year of sale will be the same as shown
above. If the rental period exceeds 14 days in any year, then the rental income
(less expenses) will be taxable and AGI would include not only the capital gain,
but also some amount that is depreciation recapture. (See next example.)
NOTE: If the second residence is SOLELY a rental property, it is treated as an investment
property. See examples 7 and 8.
★
9. Additional Info
This new tax was never introduced, discussed or reviewed until just hours before the final debate on the
massive health care legislation began. That legislation was enacted on March 23, 2010, more than a year
after the health care debate began. This new tax was put forward after Congress was unable to agree on
changes to current law that were sufficient to pay for the proposed changes to the Medicare program and
increased subsidies to individuals and businesses.
The new tax raises more than $210 billion (over 10 years), representing more than half of the total new
expenditures in the health care reform package. NAR expressed its strongest possible objections, but the
legislation passed on a largely party line vote.
The new tax is sometimes called a “Medicare tax” because the proceeds from it are to be dedicated to the
Medicare Trust Fund. That Fund will run dry in only a few more years, so this tax is a means of extending
its life.
A second new tax, also dedicated to Medicare funding, is imposed on the so-called “earned” income of
higher income individuals. This earned income tax has a much lower rate of 0.9% (0.009). Like the tax
described in this brochure, this additional or alternative tax is based on adjusted gross income thresholds
of $200,000 for an individual and $250,000 on a joint return. Like the 3.8% tax, this 0.9% tax is imposed
only on the excess of earned income above the threshold amounts. An example and some analysis of this
tax is presented in Example 5 of this brochure.
Another way of thinking about these new taxes is to think of the 3.8% tax as being imposed on a portion
of the money that you make on your money — your capital (sometimes referred to as “unearned income”).
The 0.9% tax is imposed on a portion of the money you make on your labor — your salary, wages,
commission and similar income related to earning a livelihood.
Online FAQs
www.REALTOR.org/healthreform
These FAQs can answer most of the questions not covered in these examples.
No separate brochure has been prepared on the 0.9% tax, as it has none of
the complexity associated with the 3.8% tax.
★
10. LEARN MORE ABOUT GOVERNMENT AFFAIRS:
WWW.REALTOR.ORG/GOVERNMENT_AFFAIRS
ACCESS INFORMATION ON CURRENT INITIATIVES