Monday, July 02, 2012

The 3.8% Roberts Tax on Investment Income Kicks in on Jan. 1, 2013

TaxProf Blog: WSJ: The 3.8% Roberts Tax on Investment Income Kicks in on Jan. 1, 2013
Here are answers to some basic questions about the tax:
How does the 3.8% tax on investment income work?
How is "investment income" defined?
What are some examples of when the tax would and wouldn't apply?
How would the 3.8% tax apply to the sale of a principal residence?
What happens if a taxpayer has adjusted gross income above the threshold that is then reduced by a large itemized deduction—such as for medical expenses or a charitable gift?
Does the 3.8% tax apply to trusts and estates?
Doesn't the health-care law also have an extra payroll tax for higher earners?

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