In Part 2 we will look at how the 3.8% Medicare surtax from “Obamacare” and elimination of the mortgage interest deduction could affect today’s election.
Before I get into those topics, I want to share a revenue producing idea for the government. I recently found out that in Australia, if you don’t vote you are fined. Now that’s a great way to get people to the polls and create revenue. On a more serious note, I feel strongly that we have a duty and a responsibility to vote. Men and women have given their lives so that we may have this freedom. I hope you honor them today and vote.
Effective January 1, 2013 – there will be a 3.8% tax on investment income. Some real estate transactions will be affected by this new law.
Here are the facts:
1) The new tax will affect individuals with more than $200,000 in adjusted gross income (AGI) and couples with (AGI) above $250,000. These incomes are not indexed for inflation so more people may be affected over time.
2) The tax will apply to either your net investment income or AGI whichever is less.
3) The gain from the sale of a principal residence ($250,000 for individuals or $500,000 for married filing jointly) will continue to be excluded.
4) Vacation home gain… Continue Reading
