3.8% Medicare Tax Post 2012 is not limited exclusively to real estate transactions - John R. Dundon II, Enrolled Agent
8052
post-template-default,single,single-post,postid-8052,single-format-standard,bridge-core-2.9.2,qodef-qi--no-touch,qi-addons-for-elementor-1.5.1,qode-page-transition-enabled,ajax_fade,page_not_loaded,,qode_grid_1300,footer_responsive_adv,qode-content-sidebar-responsive,qode-theme-ver-28.5,qode-theme-bridge,qode_header_in_grid,wpb-js-composer js-comp-ver-6.7.0,vc_responsive,elementor-default,elementor-kit-269
 

3.8% Medicare Tax Post 2012 is not limited exclusively to real estate transactions

3.8% Medicare Tax Post 2012 is not limited exclusively to real estate transactions

A recent Congressional Research Service (CRS) Report sheds some light on the misconception that the 3.8% Medicare contributions tax on unearned income, which was added by the Health Care and Education Reconciliation Act of 2010, and effective for tax years beginning in 2013, is a “home sales tax” or a “real estate tax.” The CRS report stresses that the tax is not limited exclusively to real estate transactions and does not apply to all real estate transactions. For example, the gain from the sale of a home that is excluded under §121 won’t be subject to the tax. In addition, gain in excess of the exclusion and gain on other real transactions may escape the tax as a result of income limitations built into the tax.



Share