The Pernicious “Unearned” Income Tax on High Income Earners

ObamaCare smacks a new tax on unearned income in order to help pay for the gargantuan program. Many refer to the tax as a real estate sales tax, or transfer tax. Even though it is not such a tax, it sure looks and smells like it; especially, when applied to net investment income generated by real estate. It also hits income generated by other forms of capital. In many ways, it becomes a double whammy on those who pay capital gains tax. The new tax goes into effect January 1, 2013. It seems like just another way to punish successful investors. The 3.8% levy will not affect any other segment of the population. Wouldn’t it have made more sense to let everyone contribute via a National sales tax? The link contains a thorough Q&A covering the important aspects of the tax.

Q&A Sheet                 Podcast

 

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About BrokerTom

California Real Estate Broker, and REALTOR® representing residential buyers, sellers, renters, and investors. Goal: Create wealth along with positive, memorable experiences for all my clients. BRE License 01256619.
This entry was posted in Homes, investing, Orange County, Real Estate. Bookmark the permalink.

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