On this Thankful Thursday, we will still talking about the bill that averted the fiscal cliff which is officially known as the “American Taxpayer Relief Act of 2012.” Yesterday’s post provided an overview of the bill but today we are discussing what 1031 exchangers are most interested in: CAPITAL GAINS and ESTATE TAXES.
On this Wealth Building Wednesday, we are going to talk about the Fiscal Cliff – just like everyone else!
Included in The Health Care and Education Reconciliation Act of 2010, signed into law on March 30, 2010, is an "Unearned Income Medicare Contribution" that impose a 3.8% tax on all unearned income, including any profit on the sale of real estate. It is not a real estate sales tax or national transfer tax but depending on your income level, the new tax may apply to you. The new tax applies to all unearned income you have regardless of whether or not it is related to real estate.