As I mentioned in an earlier post, in 2013, some lucky Landlords will face the new “3.8% tax” on investment income. This legislation is unlikely to be affected by the “financial cliff” legislation (read: “Bush Tax Cuts”) that is the topic of so much news right now and so landlords need to get familiar with the rules.
Obamacare
Now that the election is over… let’s talk about that 3.8% Medicare tax
I hesitate to get political here, so now that the nation has decided how it wants to go for the next two to four years, let’s talk about the Patient Protection and Affordable Care Act, also known as “Obamacare” or “Obamatax” depending on your particular side of the aisle. Starting next year (January 1, 2013), Obamacare (for lack of a better shorthanded term for it) brings America a new three point eight percent (3.8%) Medicare tax imposed on certain investment income.