3.8 Percent Tax with Obama Health Care Law

Date: Jul. 17th, 2012
Contact: Ryan Sondrup Phone: 720-989-8796

3.8% Tax Goes Into Effect With Obama Health Care Law Being Upheld

News from the mountains.  The Summit Association of Realtors provides a tremendous resource to local brokers with their Government Affairs Report.  This is a bi-weekly report to help local realtors with legislation and news that pertains to the mountain real estate community.  Recently they released information on the upcoming health care tax as it relates to real estate.  I thought this was news you could use...

"You have heard that the Obama Affordable Health Care Act was upheld by the U.S. Supreme Court. In the new law, there is a 3.8% tax imposed in the law, and it goes into effect in January 2013. Many have referred to it as a real estate tax, but it is not. The 3.8% tax is imposed on investment income of upper-income households to help pay for Medicare. For individuals earning $200,000 or more, or married couples earning $250,000 or more, the 3.8% tax might be subject to the 3.8 percent tax on a portion of that income. According to NAR, whether it actually applies is dependent on many factors having to do with the kind and amount of the investment income the household receives. In this law, investment income includes capital gains, dividends, interest payments, and, for those who own rental property, net rental income. There are a number of scenarios in which this 3.8% tax would or would not apply. NAR has put together a brochure with a number of scenarios to help you understand the new law. If you would like a copy, please email SAR Government Affairs Director Sarah Thorsteinson at"

If you have any questions please let us know...enjoy.