2016 tax review hints and changes, including PEASE and PEP Limitation, Alternative Minimum Tax (AMT), donations of appreciated capital gain property, qualified charitable distributions, ELOI contracts, net investment income tax (NIIT), Kiddie Tax rates and qualifications, family limited partnerships, tax reform, and the "death tax" provided by a certified CPA.
The passage of the Tax Cuts and Jobs Act will have widespread and long lasting implications throughout the country and will change how most taxpayers will prepare their tax returns. Citrin Cooperman recently hosted a seminar in Philadelphia to provide insight on where we are now, how we plan to move forward, and how the new law will impact your overall business and tax strategies. Join us to get answers to questions in the following areas:
Corporate and Businesses
Pass-Through Entities
International Issues
Individuals
Thanks to Ulster Savings Bank for hosting this event, guest speaker Jonathan Gudema of Planned Giving Advisors and to all of our participants for joining us to learn more about the impact of the new tax law on charitable giving.
2016 tax review hints and changes, including PEASE and PEP Limitation, Alternative Minimum Tax (AMT), donations of appreciated capital gain property, qualified charitable distributions, ELOI contracts, net investment income tax (NIIT), Kiddie Tax rates and qualifications, family limited partnerships, tax reform, and the "death tax" provided by a certified CPA.
The passage of the Tax Cuts and Jobs Act will have widespread and long lasting implications throughout the country and will change how most taxpayers will prepare their tax returns. Citrin Cooperman recently hosted a seminar in Philadelphia to provide insight on where we are now, how we plan to move forward, and how the new law will impact your overall business and tax strategies. Join us to get answers to questions in the following areas:
Corporate and Businesses
Pass-Through Entities
International Issues
Individuals
Thanks to Ulster Savings Bank for hosting this event, guest speaker Jonathan Gudema of Planned Giving Advisors and to all of our participants for joining us to learn more about the impact of the new tax law on charitable giving.
2020 Year-End Tax Planning for Law Firms and AttorneysWithum
Tax planning can be a difficult strategic process; this tax planning season is further complicated by the COVID-19 pandemic as well as the uncertainties surrounding the Presidential Election. This session will shed light on a number of significant considerations regarding NJ BAIT, nexus issues related to remote working, and PPP loan forgiveness as it relates to general high net worth planning.
C-Suite Snacks Webinar Series: There’s No Vaccine for This - State and Local ...Citrin Cooperman
Sign up for our weekly C-Suite Snacks webinars here: https://www.citrincooperman.com/infocus/c-suite-snacks
Our C-Suite Snacks webinar series provides the middle market with brief, strategic, and tactical business improvement information for 30 minutes every week. Join Citrin Cooperman live every Thursday at noon for snack-sized insights for business executives.
The pandemic has affected everything in our lives, all the way down to how we run our businesses and our personal finances. In this session, State and Local Tax Partner Eugene Ruvere covered business and personal income tax considerations connected to the pandemic.
Status of Estate and Gift Tax Law as of Jan 2010; planning opportunities in 2010; cautions and traps if retroactive estate tax passed in 2010; planning for 2011.
TAG Tax - Global Perspectives Call (U.S. Tax Update and Romania / Moldova Ove...TAG Alliances
The TAG Tax Specialty Group is proud to present its first in a series of virtual sessions aimed at exposing members to various international tax structures, policies and trends.
Date: February 8, 2017 at 11:00 am EST (New York, GMT-05:00)
Duration: 30 to 45 Minutes (Approx.)
Via: Webex (Register via the link below)
Complimentary for all TAG Alliances Members
[Note: If you are unable to attend or the time is not convenient for your time zone, please register for the webinar and you will receive a recording once it becomes available.]
~ In this edition: ~
U.S. Tax Update and What "Might" Be Ahead
International tax lawyer, Anna Derewenda of Williams Mullen (VA & NC, USA - TAGLaw), will provide members with an overview of what potentially lies ahead for the U.S. tax code and what businesses and individuals, both those in the U.S. and those with U.S. interests, can possibly anticipate.
Tax Overview Romania and Moldova
Bogdan Nastase of Group Expert Consulting (Romania - TIAG) will discuss common tax strategies in these very close, but very different countries. For example, even though these countries use the same language and business culture, Romania is an EU Member while Moldova is not—an interesting picture of international tax and financial planning.
The 2014 Essential Tax and Wealth Planning Guide discusses opportunities available through the final few months of 2013, and the planning environment beyond as policymakers continue a tax reform debate that could fundamentally change how individual taxpayers compute their taxes.
The tax-related decisions you make today, and at various points in your career, may have a marked effect on how you save for retirement and how much you will have down the road to support your goals. Many tax decisions you make about retirement are one-time choices that can be very costly to change, so it pays to plan.
For more information, visit http://www.deloitte.com/us/taxandwealthguide
The Long Lasting Impact of Tax Reform- NYC- Event- 1/24/18Citrin Cooperman
The passage of the Tax Cuts and Jobs Act will have widespread and long lasting implications throughout the country and will change how most taxpayers will prepare their tax returns. Citrin Cooperman recently hosted a seminar in NYC to provide insight on where we are now, how we plan to move forward, and how the new law will impact your overall business and tax strategies.
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.
Highlights of the Final Tax Cuts and Jobs ActSarah Cuddy
The combined tax reform bill includes plans to lower tax rates on individuals and businesses and change many deductions. Those hoping for tax simplification, however, may be disappointed.
2020 Year-End Tax Planning for Law Firms and AttorneysWithum
Tax planning can be a difficult strategic process; this tax planning season is further complicated by the COVID-19 pandemic as well as the uncertainties surrounding the Presidential Election. This session will shed light on a number of significant considerations regarding NJ BAIT, nexus issues related to remote working, and PPP loan forgiveness as it relates to general high net worth planning.
C-Suite Snacks Webinar Series: There’s No Vaccine for This - State and Local ...Citrin Cooperman
Sign up for our weekly C-Suite Snacks webinars here: https://www.citrincooperman.com/infocus/c-suite-snacks
Our C-Suite Snacks webinar series provides the middle market with brief, strategic, and tactical business improvement information for 30 minutes every week. Join Citrin Cooperman live every Thursday at noon for snack-sized insights for business executives.
The pandemic has affected everything in our lives, all the way down to how we run our businesses and our personal finances. In this session, State and Local Tax Partner Eugene Ruvere covered business and personal income tax considerations connected to the pandemic.
Status of Estate and Gift Tax Law as of Jan 2010; planning opportunities in 2010; cautions and traps if retroactive estate tax passed in 2010; planning for 2011.
TAG Tax - Global Perspectives Call (U.S. Tax Update and Romania / Moldova Ove...TAG Alliances
The TAG Tax Specialty Group is proud to present its first in a series of virtual sessions aimed at exposing members to various international tax structures, policies and trends.
Date: February 8, 2017 at 11:00 am EST (New York, GMT-05:00)
Duration: 30 to 45 Minutes (Approx.)
Via: Webex (Register via the link below)
Complimentary for all TAG Alliances Members
[Note: If you are unable to attend or the time is not convenient for your time zone, please register for the webinar and you will receive a recording once it becomes available.]
~ In this edition: ~
U.S. Tax Update and What "Might" Be Ahead
International tax lawyer, Anna Derewenda of Williams Mullen (VA & NC, USA - TAGLaw), will provide members with an overview of what potentially lies ahead for the U.S. tax code and what businesses and individuals, both those in the U.S. and those with U.S. interests, can possibly anticipate.
Tax Overview Romania and Moldova
Bogdan Nastase of Group Expert Consulting (Romania - TIAG) will discuss common tax strategies in these very close, but very different countries. For example, even though these countries use the same language and business culture, Romania is an EU Member while Moldova is not—an interesting picture of international tax and financial planning.
The 2014 Essential Tax and Wealth Planning Guide discusses opportunities available through the final few months of 2013, and the planning environment beyond as policymakers continue a tax reform debate that could fundamentally change how individual taxpayers compute their taxes.
The tax-related decisions you make today, and at various points in your career, may have a marked effect on how you save for retirement and how much you will have down the road to support your goals. Many tax decisions you make about retirement are one-time choices that can be very costly to change, so it pays to plan.
For more information, visit http://www.deloitte.com/us/taxandwealthguide
The Long Lasting Impact of Tax Reform- NYC- Event- 1/24/18Citrin Cooperman
The passage of the Tax Cuts and Jobs Act will have widespread and long lasting implications throughout the country and will change how most taxpayers will prepare their tax returns. Citrin Cooperman recently hosted a seminar in NYC to provide insight on where we are now, how we plan to move forward, and how the new law will impact your overall business and tax strategies.
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.
Highlights of the Final Tax Cuts and Jobs ActSarah Cuddy
The combined tax reform bill includes plans to lower tax rates on individuals and businesses and change many deductions. Those hoping for tax simplification, however, may be disappointed.
The Ledyard Senior Center is open weekdays from 8:30 a.m. —2:30 p.m. as a place for seniors to congregate and socialize.
You must be 55 years young to be a member. Join them to dance, sing, play bridge or exercise! Lunch is served daily.
Things to consider when buying a home in Eastern CT including Ledyard, Groton, Mystic, Stonington, Norwich, Montville, New London, East Lyme, or Waterford.
This presentation includes an overview of tax changes from 2012 and what's new in 2013.
For more information about our tax services, visit www.cbiz.com
ACCT323 Final exam1.Which of the following represents .docxannetnash8266
ACCT323 Final exam
1.
Which of the following represents the largest percentage of state tax revenue?
Sales tax
Individual income tax
Other
Property tax
None of these
2.
Congress recently approved a new, bigger budget for the IRS. What taxation concept evaluates the cost of administering our tax law?
Convenience
Economy
Certainty
Equity
None of these
3.
The city of Granby, Colorado recently enacted a 1.5% surcharge on vacation cabin rentals that will help pay for the city's new elementary school. This surcharge is an example of _______.
A sin tax to discourage undesirable behavior
A government fine
An earmarked tax
Both A and C
None of these
4.
If Susie earns $750,000 in taxable income, how much tax will she pay as a single taxpayer for year 2012?
$231,639.50
$262,500.00
$239,261.00
$236,435.00
None of these
5.
Which of the following is not considered a primary authority?
Tax Court case.
Regulation.
Revenue Ruling.
Tax service.
None of these.
6.
Which of the following is not a factor that determines whether a taxpayer is required to file a tax return?
rev: 03_21_2013_QC_28372
Filing status.
Taxpayer's gross income.
Taxpayer's occupation.
Taxpayer's age.
None of these.
7
.
Corporations are required to file a tax return only if their taxable income is greater than:
$0.
$1,000.
$600.
$750.
None of these. Corporations are always required to file a tax return.
8.
Lavonda discovered that the U.S. Circuit Court of Appeals for the Federal Circuit has recently issued a favorable opinion with respect to an issue that she is going to litigate with the IRS. Lavonda should choose which of the following trial courts to hear her case:
Tax Court only.
U.S. Court of Federal Claims only.
U.S. District Court only.
Tax Court or the U.S. District Court.
Tax Court or the U.S. Court of Federal Claims.
9.
Jason's employer pays year-end bonuses each year on December 31. Jason, a cash basis taxpayer, would prefer to not pay tax on his bonus this year (and actually would prefer his daughter to pay tax on the bonus). So, he leaves town on December 31, 2011 and has his daughter, Julie, pick up his check on January 2nd, 2012. Who reports the income and when?
Julie in 2011
Julie in 2012
Jason in 2011
Jason in 2012
None of these
Top of Form
10.
Investing in municipal bonds to avoid paying tax on interest earned and to earn a higher after-tax yield is an example of:
conversion
tax evasion
timing
income shifting
None of these
Bottom of Form
11.
Which of the following increases the benefits of income deferral?
increasing tax rates
smaller after-tax rate of return
larger after-tax rate of return
smaller magnitude of transactions
None of these
12.
Which of the following is an example of the timing strategy?
A corporation paying its shareholders a $20,000 dividend
A parent employing her child in the family business
A taxpayer gifting stock to his children
A cash-basis busi.
You pay self-employment (SE) tax when net earnings from
self-employment are $400 or more. You are self-employed
if you carry on a trade or business as a sole proprietor (including
farmers) or as a general partner in a partnership.
A trade or business generally is an activity carried on for
a livelihood or in good faith to make a profit. Facts and circumstances
determine whether or not an activity is a trade
or business.
Attached is an excellent, easy to read newsletter summarizing the important changes, legislative extensions, and issues relating to your individual tax return for 2009 and beyond. Please read it well before 12/31 as there are items that need to be considered or acted upon before the end of this year to take full advantage of the legislation. It’s the best one I’ve come across. Its current and includes some commentary, planning suggestions, and even some health care issues as they relate to your taxes.
I will later post a copy of year end letters for both businesses and individuals that my clients receive.
If you should have any questions at this time on any of these items, please contact me anytime.
Thanks
Wally Wleklinski
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.
Planning to Avoid the New Medicare Tax & Other 2013 Tax IncreasesBruce Givner
Information on all of the new tax increases for 2013, including the new Medicare tax, and how it will affect you!
For more information, please visit us at www.givnerkaye.com
Year-End Tax and Financial Planning by myStockOptions.comBruce Brumberg
This presentation provides a timely overview of year-end financial-planning and tax topics for stock compensation, including points of importance for employee education and for financial advisors. Special attention is given to issues involving tax-rate increases. While each annual edition features planning concerns specific to that year-end, the general ideas presented here are perennially useful.
What does the new Tax Cuts and Jobs Act mean for you? Our January Investment Insights explores the key points of the most significant overhaul of the tax system since '86, reviewing the new tax brackets, deductions and exemptions, and the effects on the economy.
Regulation us tax - aicpa 2019-convertedmadhuri199
To learn more about the following career choices, you will visit our USA, CMA USA, CFA etc. controller centers. In the metropolis, Bangalore, Delhi, Gurgaon, Hyderabad or visit www.simandhareducation.com
Rumors keep surfacing about the 3.8% real estate transfer tax added to the health care bill. The National Association of Realtors has prepared information with scenarios and examples to explain exactly when and how this tax would apply.
Similar to The real scoop on the Health Care Reform tax on real estate. (20)
This report of Single Family Home Sales in New London County is generated by the 10th of each month with information from the previous month. It includes new listings, pending and closed sales in New London County for the month of May
Things to consider when selling a home in Eastern CT including Ledyard, Groton, Mystic, Stonington, Norwich, Montville, New London, East Lyme, or Waterford.
New London County Market Statistics by Town as prepared by the Eastern CT Association of Realtors using ales reported by the members of the Connecticut Multiple Listing Service, Inc.
Information on Ledyard Housing and Population. Housing Data Profiles are produced by the Partnership for Strong Communities. Updated November 16, 2015.
You need the right strategy and a good plan to build relationships on Facebook. Don't worry about the technology, it just takes good content to create a successful Facebook Page.
GraphRAG is All You need? LLM & Knowledge GraphGuy Korland
Guy Korland, CEO and Co-founder of FalkorDB, will review two articles on the integration of language models with knowledge graphs.
1. Unifying Large Language Models and Knowledge Graphs: A Roadmap.
https://arxiv.org/abs/2306.08302
2. Microsoft Research's GraphRAG paper and a review paper on various uses of knowledge graphs:
https://www.microsoft.com/en-us/research/blog/graphrag-unlocking-llm-discovery-on-narrative-private-data/
Connector Corner: Automate dynamic content and events by pushing a buttonDianaGray10
Here is something new! In our next Connector Corner webinar, we will demonstrate how you can use a single workflow to:
Create a campaign using Mailchimp with merge tags/fields
Send an interactive Slack channel message (using buttons)
Have the message received by managers and peers along with a test email for review
But there’s more:
In a second workflow supporting the same use case, you’ll see:
Your campaign sent to target colleagues for approval
If the “Approve” button is clicked, a Jira/Zendesk ticket is created for the marketing design team
But—if the “Reject” button is pushed, colleagues will be alerted via Slack message
Join us to learn more about this new, human-in-the-loop capability, brought to you by Integration Service connectors.
And...
Speakers:
Akshay Agnihotri, Product Manager
Charlie Greenberg, Host
Software Delivery At the Speed of AI: Inflectra Invests In AI-Powered QualityInflectra
In this insightful webinar, Inflectra explores how artificial intelligence (AI) is transforming software development and testing. Discover how AI-powered tools are revolutionizing every stage of the software development lifecycle (SDLC), from design and prototyping to testing, deployment, and monitoring.
Learn about:
• The Future of Testing: How AI is shifting testing towards verification, analysis, and higher-level skills, while reducing repetitive tasks.
• Test Automation: How AI-powered test case generation, optimization, and self-healing tests are making testing more efficient and effective.
• Visual Testing: Explore the emerging capabilities of AI in visual testing and how it's set to revolutionize UI verification.
• Inflectra's AI Solutions: See demonstrations of Inflectra's cutting-edge AI tools like the ChatGPT plugin and Azure Open AI platform, designed to streamline your testing process.
Whether you're a developer, tester, or QA professional, this webinar will give you valuable insights into how AI is shaping the future of software delivery.
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...Ramesh Iyer
In today's fast-changing business world, Companies that adapt and embrace new ideas often need help to keep up with the competition. However, fostering a culture of innovation takes much work. It takes vision, leadership and willingness to take risks in the right proportion. Sachin Dev Duggal, co-founder of Builder.ai, has perfected the art of this balance, creating a company culture where creativity and growth are nurtured at each stage.
UiPath Test Automation using UiPath Test Suite series, part 4DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 4. In this session, we will cover Test Manager overview along with SAP heatmap.
The UiPath Test Manager overview with SAP heatmap webinar offers a concise yet comprehensive exploration of the role of a Test Manager within SAP environments, coupled with the utilization of heatmaps for effective testing strategies.
Participants will gain insights into the responsibilities, challenges, and best practices associated with test management in SAP projects. Additionally, the webinar delves into the significance of heatmaps as a visual aid for identifying testing priorities, areas of risk, and resource allocation within SAP landscapes. Through this session, attendees can expect to enhance their understanding of test management principles while learning practical approaches to optimize testing processes in SAP environments using heatmap visualization techniques
What will you get from this session?
1. Insights into SAP testing best practices
2. Heatmap utilization for testing
3. Optimization of testing processes
4. Demo
Topics covered:
Execution from the test manager
Orchestrator execution result
Defect reporting
SAP heatmap example with demo
Speaker:
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
Elevating Tactical DDD Patterns Through Object CalisthenicsDorra BARTAGUIZ
After immersing yourself in the blue book and its red counterpart, attending DDD-focused conferences, and applying tactical patterns, you're left with a crucial question: How do I ensure my design is effective? Tactical patterns within Domain-Driven Design (DDD) serve as guiding principles for creating clear and manageable domain models. However, achieving success with these patterns requires additional guidance. Interestingly, we've observed that a set of constraints initially designed for training purposes remarkably aligns with effective pattern implementation, offering a more ‘mechanical’ approach. Let's explore together how Object Calisthenics can elevate the design of your tactical DDD patterns, offering concrete help for those venturing into DDD for the first time!
Accelerate your Kubernetes clusters with Varnish CachingThijs Feryn
A presentation about the usage and availability of Varnish on Kubernetes. This talk explores the capabilities of Varnish caching and shows how to use the Varnish Helm chart to deploy it to Kubernetes.
This presentation was delivered at K8SUG Singapore. See https://feryn.eu/presentations/accelerate-your-kubernetes-clusters-with-varnish-caching-k8sug-singapore-28-2024 for more details.
Smart TV Buyer Insights Survey 2024 by 91mobiles.pdf91mobiles
91mobiles recently conducted a Smart TV Buyer Insights Survey in which we asked over 3,000 respondents about the TV they own, aspects they look at on a new TV, and their TV buying preferences.
Securing your Kubernetes cluster_ a step-by-step guide to success !KatiaHIMEUR1
Today, after several years of existence, an extremely active community and an ultra-dynamic ecosystem, Kubernetes has established itself as the de facto standard in container orchestration. Thanks to a wide range of managed services, it has never been so easy to set up a ready-to-use Kubernetes cluster.
However, this ease of use means that the subject of security in Kubernetes is often left for later, or even neglected. This exposes companies to significant risks.
In this talk, I'll show you step-by-step how to secure your Kubernetes cluster for greater peace of mind and reliability.
Neuro-symbolic is not enough, we need neuro-*semantic*Frank van Harmelen
Neuro-symbolic (NeSy) AI is on the rise. However, simply machine learning on just any symbolic structure is not sufficient to really harvest the gains of NeSy. These will only be gained when the symbolic structures have an actual semantics. I give an operational definition of semantics as “predictable inference”.
All of this illustrated with link prediction over knowledge graphs, but the argument is general.
Slack (or Teams) Automation for Bonterra Impact Management (fka Social Soluti...Jeffrey Haguewood
Sidekick Solutions uses Bonterra Impact Management (fka Social Solutions Apricot) and automation solutions to integrate data for business workflows.
We believe integration and automation are essential to user experience and the promise of efficient work through technology. Automation is the critical ingredient to realizing that full vision. We develop integration products and services for Bonterra Case Management software to support the deployment of automations for a variety of use cases.
This video focuses on the notifications, alerts, and approval requests using Slack for Bonterra Impact Management. The solutions covered in this webinar can also be deployed for Microsoft Teams.
Interested in deploying notification automations for Bonterra Impact Management? Contact us at sales@sidekicksolutionsllc.com to discuss next steps.
Epistemic Interaction - tuning interfaces to provide information for AI supportAlan Dix
Paper presented at SYNERGY workshop at AVI 2024, Genoa, Italy. 3rd June 2024
https://alandix.com/academic/papers/synergy2024-epistemic/
As machine learning integrates deeper into human-computer interactions, the concept of epistemic interaction emerges, aiming to refine these interactions to enhance system adaptability. This approach encourages minor, intentional adjustments in user behaviour to enrich the data available for system learning. This paper introduces epistemic interaction within the context of human-system communication, illustrating how deliberate interaction design can improve system understanding and adaptation. Through concrete examples, we demonstrate the potential of epistemic interaction to significantly advance human-computer interaction by leveraging intuitive human communication strategies to inform system design and functionality, offering a novel pathway for enriching user-system engagements.
Transcript: Selling digital books in 2024: Insights from industry leaders - T...BookNet Canada
The publishing industry has been selling digital audiobooks and ebooks for over a decade and has found its groove. What’s changed? What has stayed the same? Where do we go from here? Join a group of leading sales peers from across the industry for a conversation about the lessons learned since the popularization of digital books, best practices, digital book supply chain management, and more.
Link to video recording: https://bnctechforum.ca/sessions/selling-digital-books-in-2024-insights-from-industry-leaders/
Presented by BookNet Canada on May 28, 2024, with support from the Department of Canadian Heritage.
Transcript: Selling digital books in 2024: Insights from industry leaders - T...
The real scoop on the Health Care Reform tax on real estate.
1. NAR Frequently Asked Questions
Health Insurance Reform
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
NEW MEDICARE TAX ON “UNEARNED” NET INVESTMENT INCOME
Q-1: Who will be subject to the new taxes imposed in the health legislation?
A: A new 3.8% tax will apply to the “unearned” income of “High Income” taxpayers. Another 0.9% tax will apply
to the “earned” income of many of these same individuals. Both levies are referred to as “Medicare” taxes. (For
a description of the new 0.9% tax, see separate Q&A entitled “NEW TAX ON EARNED INCOME: WAGES, SALARIES
AND COMMISSIONS.”)
Q-2: Who is a “High Income” Taxpayer?
A: Those whose tax filing status is “single” will be subject to the new unearned income taxes if they have
Adjusted Gross Income (AGI) of more than $200,000. Married couples filing a joint return with AGI of more
than $250,000 will also be subject to the new tax. (The AGI threshold for married filing separate returns is
$125,000.)
Q-3: Are the $200,000 and $250,000 thresholds indexed for inflation?
A: No. Thus, over time, more individuals may become subject to this tax.
Q-4: When does the new 3.8% Medicare tax take effect?
A: The new Medicare tax on unearned income will take effect January 1, 2013.
Q-5: What is “unearned” net investment income?
A: Unearned income is the income that an individual derives from investing his/her capital. It includes capital
gains, rents, dividends and interest income. It also comes from some investments in active businesses if the
investor is not an active participant in the business.
The portion of unearned income that is subject both to income tax and the new Medicare tax is the amount of
income derived from these sources, reduced by any expenses associated with earning that income. (Hence the
term “net” investment income.) Thus, in the case of rents, the taxable amount would be gross rents minus all
expenses (including depreciation) incurred in operating the rental property. So if gross rents were $100,000
with associated expenses of $40,000, net rents of $60,000 ($100,000 minus $40,000) would be included in
Adjusted Gross Income (AGI).
REALTOR® is a registered collective membership mark which may be used only by real estate
professionals who are members of the NATIONAL ASSOCIATION OF REALTORS®
and subscribe to its strict Code of Ethics
2. NAR Frequently Asked Questions
Health Insurance Reform
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
Q-6: So the new tax will apply to rents from investment properties that I own?
A: Maybe. Remember that net investment income includes only net rental income. Thus, gross rents would not
be subject to the tax. Rather, gross rents would be reduced (as they are under the income tax) by all allowable
expenses, including depreciation, cost of repairs, property taxes and all other expenses related to the property.
AGI includes net income from rent, so if your AGI is above the $200,000/$250,000 thresholds, then the rental
income might be subject to the tax. For many investment real estate owners, the net rents will be the same as
or similar to the amounts reported on their Schedule E, filed with their Form 1040 Income Tax Return. (For
calculations, see Q-8, below. See also Q-9 through Q-12 related to capital gain from sale of principal residence,
losses on sale and to vacation homes, below.)
Q-7: Does the tax apply to the yearly appreciation of an asset?
A: No. Capital gains are subject to this new tax only in the year when the asset is sold. The amount of the gain
will be measured in the same way that it is for income tax purposes. This rule applies to real estate and all other
appreciating capital assets. Net capital gains are taxable only in the year of sale.
Q-8: How is the new 3.8% Medicare tax calculated?
A: The new 3.8% Medicare tax is assessed only when Adjusted Gross Income (AGI) is more than
$200,000/$250,000. (See Q-2 above.) AGI includes net income from interest, dividends, rents and capital gains,
as well as earned compensation and several additional forms of income presented on a Form 1040 Income Tax
Return.
The tax is NOT imposed on the total AGI, nor is it imposed solely on the investment income. Rather, the taxable
amount will depend on the operation of a formula. The taxpayer will determine the LESSER of (1) net
investment income OR (2) the excess of AGI over the $200,000/$250,000 AGI thresholds. Thus, if net
investment income is the smaller amount, then the 3.8% tax is applied only to the net investment income
amount. If the excess over the thresholds is the smaller amount, then the 3.8% tax would apply only to the
excess amount.
For example, if AGI for a single individual is $275,000, then the excess over $200,000 would be $75,000
($275,000 minus $200,000). Assume that this individual’s net investment income is $60,000. The new 3.8% tax
applies to the smaller amount. In this example, $60,000 of net investment income is less than the $75,000
excess over the threshold. Thus, in this example, the 3.8% tax is applied to the $60,000.
If this single individual had AGI if $275,000 and net investment income of $90,000, then the new tax would be
imposed on the smaller amount: the $75,000 of excess over $200,000.
REALTOR® is a registered collective membership mark which may be used only by real estate
professionals who are members of the NATIONAL ASSOCIATION OF REALTORS®
and subscribe to its strict Code of Ethics
3. NAR Frequently Asked Questions
Health Insurance Reform
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
Rules of thumb for predicting the application of this tax year to year are not readily determinable, largely
because the proportion of net investment income compared to AGI will vary from year to year and from
individual to individual.
Q-9: Will the $250,000/$500,000 exclusion on the sale of a principal residence continue to apply?
A: Yes. Any gain from the sale of a principal residence that is less than $250,000 (individual) or $500,000 (joint
return) will continue to be excluded from the income tax. The new 3.8% tax will NOT apply to this excluded
amount of the gain.
Q-10: Will the 3.8% tax apply to any part of the gain on the sale of a principal residence?
A: The new Medicare tax would apply only to any gain realized that is more than the $250K/$500K existing
primary home exclusion (known as the “taxable gain”), and only if the seller has AGI above the $200K/$250K AGI
thresholds.
So, for example, if the taxable gain was $30,000 and a married couple had AGI (which would include the taxable
gain) of $180,000, the 3.8% tax would not apply because AGI is less than $250,000. If that same couple had AGI
of $290,000, then the application of the 3.8% tax would be subject to the same formula described above. The
$30,000 taxable gain on the sale would be less than the $40,000 excess above $250,000 AGI, so the $30,000 gain
would be subject to the new 3.8% tax.
Q-11: Is rent from a vacation home subject to the 3.8% tax? And what about the gain on sale of a vacation or
rental property?
A: The application of the tax will depend on whether the vacation home has been rented out, the period for
which it has been rented and whether the property is solely for the enjoyment of the owner. If the owner has
rented the home out to others, then the 14-day rent exclusion will continue to apply. Thus, if the owner rents
the property to others (including family members) for 14 or fewer days, there would be no net investment tax.
(Note that no deductions for expenses would be available, as under current law.)
If the home has been rented to others (including family members) for more than 14 days, then the rents (minus
related expenses) would be considered as part of net investment income and could, depending on AGI and the
calculations described above, be subject to the new tax.
If the vacation home has been used solely for personal enjoyment (i.e., there is no rental income and no
associated expenses), then a gain on sale would be treated as net investment income and could be subject to
the tax, depending on AGI. Similarly, if the property had generated rents, any net gain on sale could also be
included in net investment income. The amount of the tax (if any) would depend on the calculation formula,
above in Q-8.
REALTOR® is a registered collective membership mark which may be used only by real estate
professionals who are members of the NATIONAL ASSOCIATION OF REALTORS®
and subscribe to its strict Code of Ethics
4. NAR Frequently Asked Questions
Health Insurance Reform
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
Q-12: My rental property generates a net loss each year. How will those losses be factored into the new tax?
And what if I have net capital losses when I sell?
A: Net losses from rents and net capital losses reduce AGI. Thus, the losses themselves would not be subject to
the tax. If, after losses, AGI still exceeds the High Income thresholds, the 3.8% tax would still apply if there were
any interest or dividends income. (Capital losses reduce capital gains. If losses exceed gains, no more than
$3000 of capital losses may reduce other income in any year.)
Note that passive loss limitations will continue to apply to rental income and loss.
Q-13: All of my income is derived from real estate investments that I own and operate myself. Will my rents
and gains be subject to the new tax?
A: No. If the ownership and operation of real estate you own is your sole occupation, then those activities are
what’s called your “trade or business.” Income derived from a trade or business is not subject to the new 3.8%
tax, but could be subject to the 0.9% tax on earned income.
If the owner of rental properties has a “day job,” however, real estate investments are not considered as a
trade or business, but are rather considered as investments, even if they are a major source of income. Note
that many Realtors engage in business activities are that are the “typical” selling, leasing and brokerage
endeavors usually associated with the term “Realtor.” If they also own real estate assets as part of their own
personal investment portfolio, the rents from that portfolio could become subject to the new 3.8% tax on net
investment income, depending on AGI.
Q-14: Is there a real estate “sales tax” or a transfer tax in the new health care bill?
A: No. There is neither a real estate “sales tax” nor a real estate transfer tax in the bill.
Q-15: Will “High Income Filers” lose any portion of the Mortgage Interest they are allowed to deduct?
A: No. The mortgage interest deduction is unchanged. No cap was imposed on any itemized deductions.
Q-16: Why is this new tax called a “Medicare tax?”
A: The revenues generated from this tax will be allocated to the Medicare Trust Fund that is part of the Social
Security System. That fund is currently on shaky financial footing. The additional revenues generated from the
new earned income and unearned income taxes are intended to shore up the Medicare Trust Fund.
REALTOR® is a registered collective membership mark which may be used only by real estate
professionals who are members of the NATIONAL ASSOCIATION OF REALTORS®
and subscribe to its strict Code of Ethics
5. NAR Frequently Asked Questions
Health Insurance Reform
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
Q-17: How will this new tax affect marginal (the highest) tax rates when it is combined with existing law and
with the possible expiration of the Bush tax cuts enacted in 2001?
A: Marginal tax rates are the tax rates assessed on the “last” dollars included in taxable income. If the Bush tax
cuts are allowed to expire, then the marginal rates for upper income individuals will increase, particularly for
capital gains income. The chart below reflects the impact of those changes, presented based on implementation
of current law effective dates.
MARGINAL TAX RATES – 2010 – 2013*
(Marginal Tax Bracket is Rate Imposed on Last Dollar of Income)
Year Maximum Marginal Rate Maximum Rate with Maximum Rate with
without Medicare Medicare (Self-
Income Category Medicare (Employee
employed – 2.9%)
Only – 1.45%))
2010
(Current Law)
Ordinary Income 35% 36.45% 37.9%
Capital Gains, Dividends 15% 15% 15%
Rental Income, Interest 35% 35% 35%
2011
(Expiration of
Bush Tax Cuts)
Ordinary Income 39.6% 41.05% 42.5%
Capital Gains 20% 20% 20%
Dividends, Interest 39.6% 39.6% 39.6%
Rental Income 39.6% 39.6% 39.6%
REALTOR® is a registered collective membership mark which may be used only by real estate
professionals who are members of the NATIONAL ASSOCIATION OF REALTORS®
and subscribe to its strict Code of Ethics
6. NAR Frequently Asked Questions
Health Insurance Reform
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
2013
(Adds new Medicare
Taxes)
Ordinary Income 39.6% 41.95% 43.4%
(Adds 0.9% tax on Earned
Income)
Capital Gains 20% 23.8% 23.8%
(Adds 3.8% tax on
Unearned Income)
Dividends, Interest 39.6% 43.4% 43.4%
(Adds 3.8% tax on
Unearned Income)
Rental Income 39.6% 43.4% 43.4%
(Adds 3.8% tax on
Unearned Income)
*Several special calculations actually increase the marginal tax rates of many upper income individuals. These
include the loss of the personal exemption, loss of some itemized deductions and special self-employment tax
deductions and rate adjustments. This chart does not reflect those special calculations because their impact will
vary from taxpayer to taxpayer.
REALTOR® is a registered collective membership mark which may be used only by real estate
professionals who are members of the NATIONAL ASSOCIATION OF REALTORS®
and subscribe to its strict Code of Ethics