False 3.8% Transfer Tax Rumors Persist
Posted Jan 31, 2011
(Reprinted from SCAOR News Newsletter)
Misleading e-mails and other communications about the 3.8 percent Medicare tax in the health care reform law continue to circulate and you might be receiving some of these messages. The communications typically say the 3.8 percent tax is imposed on unearned income that includes the sale of a principle residence, but the tax that's being referenced is far more narrow than that and only has the potential to impact a small sliver of high-income households who receive investment income. The $250,000-$500,000 capital gains exclusion remains in place.
Misleading e-mails and other communications about the 3.8 percent Medicare tax in the health care reform law continue to circulate and you might be receiving some of these messages. The communications typically say the 3.8 percent tax is imposed on unearned income that includes the sale of a principle residence, but the tax that's being referenced is far more narrow than that and only has the potential to impact a small sliver of high-income households who receive investment income. The $250,000-$500,000 capital gains exclusion remains in place.
