Personal Financial Services Planning Update

Planning for the Net Investment Income Tax, also known as the Medicare Contribution Tax

November 2012

The Patient Protection and Affordable Care Act (sometimes referred to as Obamacare) and The Health Care and Education Reconciliation Act of 2010 came with new taxes for higher income taxpayers. The legislation and corresponding taxes were recently upheld by the Supreme Court. Although the new taxes were enacted to alleviate the Medicare system's financial difficulties, they also represent a revenue-raiser to help offset the cost of health care legislation.

 

Previous updates

Should you trigger capital gains at this year's low rate?

July 2012

With the threat of increased capital gain tax rates in 2013, plus additional taxes for mandated health insurance (added Medicare taxes), many high income taxpayers are wondering if it makes sense to trigger capital gains on stocks and mutual funds this year and then immediately repurchase them. The same logic might also apply to real estate and collectibles.