New tax provides another reason to participate in a Section 1031 Exchange after January 1, 2013.Beginning January 1, 2013 individuals with a modified adjusted gross income of at least $200,000 ($250,000 for couples filing jointly) will face a new 3.8 percent Medicare tax. For purposes of calculating the tax investment income will include rental income. There will be certain ways to avoid the tax, such as qualifying as a real estate professional and materially participating activities that generate the income.
Read more in this article by Jenee Hilliard, attorney with Miller Nash LLP.
No comments:
Post a Comment
Thanks for your comment! It has been sent to the moderator for review.