Health Care Tax Information
I have received numerous inquiries from both friends and clients concerned about what they have heard regarding the “property tax of 3.8% in the Health Care bill.” I have attached the brochure (in PDF) as published by the National Association of Realtors. Please contact me for any additional questions you might have on this topic
The health care legislation to go into effect in January 2013 includes a new levy on certain income investment. There are questions and conversation about the tax application to home sales. The 3.8% tax is imposed ONLY on those with more than $200,000 of Adjusted Gross Income (AGI) ($250,000 on a joint return). The tax applies to investment income, defined as interest, dividends, capital gains and net rents. These items are all included in an individual’s AGI. A formula will determine what portion, if any, of these types of investment income would be subject to the tax.