Effective January 1, 2013, Uncle Sam may have an extra bill for you to pay. Do you have adjusted gross income (AGI) that exceeds $200,000 ($250,000 as a couple filing a joint return)? If you answered “yes,” your income will be taxed an additional 3.8% on the lesser of your investment income or any income over the AGI cap mentioned above.
There are many different situations this so-called “medicare” tax will affect, including the sale of investment property and rental income, so knowing exactly how it affects you as an investor is imperative. Visit “The 3.8% Tax; Real Estate Scenarios & Examples” for more on how it may affect you and your livelihood and check with your tax professional for more.
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