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Gold/Mining/Energy : Big Dog's Boom Boom Room

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From: kollmhn	5/2/2011 12:20:19 PM
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The looming Medicare tax......... Don't forget that new 3.8% Medicare tax that will be imposed on investment income beginning in 2013. For individuals, the tax applies to the LESSER of the taxpayer’s net investment income or the amount of his modified adjusted gross income in excess of $250,000 for taxpayers filing a joint return or $200,000 for single taxpayers. This tax also applies to investment income accumulated by estates and non-grantor trusts. The 3.8% tax applies to the lesser of the estate or trust’s undistributed investment income or its adjusted gross income in excess of the dollar amount at which the highest tax bracket begins. For 2010, that amount is $11,200. For those of you that are considering converting your traditional IRA to a Roth, be sure to get it done before 1/1/2013 because your conversion is treated as a distribution and may well put you over the thresh hold and make it subject to that 3.8%. The tax will also be imposed on capital gains and passive activity net income. Do your planning soon. If your primary residence has a gain greater than the exclusion ($500k per joint return) that too will get taxed (if you then exceed the thresh holds).

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