For NAIOP Members who have asked for clarification on the new Medicare tax on “unearned” net investment income

December 15, 2011 at 4:44 pm

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, the National Association of Realtors (NAR) has prepared materials to clarify the new tax.

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.

NAR frequently asked questions

Examples of different scenarios in which this new tax applies

Entry filed under: Featured Articles.

The 8.5% dilemma Department of Revenue announces a 2.8% increase in the state general property tax for payable 2012

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