On the sale of a principal residence, this additional 3.8 percent Medicare tax applies only after the application of the exclusion of gain available under Section 121. If a taxpayer meets the requirements, up to $250,000 of gain is still excluded from gross income, and it is $500,000 for a married couple filing a joint return. In addition, the 3.8 percent additional Medicare tax will not apply to most people. It applies only to people with higher incomes compared to most people. It is a tax increase on the investment income of upper income people and will hurt the economy. However, it will NOT have a direct effect on most people. There are wild rumors going around the Internet that this additional tax is a sales tax on the sale of homes. This is absolutely NOT true.
Thank you for the professional clarification
Spouting untruths weakens the much greater effort before this Nation
It applies only to people with higher incomes compared to most people. It is a tax increase on the investment income of upper income people and will hurt the economy.
Then you say...
However, it will NOT have a direct effect on most people.
Excuse me, but that is a tax on people. It doesn't matter which people. Then you say...
There are wild rumors going around the Internet that this additional tax is a sales tax on the sale of homes. This is absolutely NOT true.
According to section 1411 of the PPAHC act it is. Whether unearned income or not, you get nailed if, for the purposes of this post, you are an investor. Whether it's a medicare tax or not, you are paying it. "Most people" is totally irrelevant.
You normally get your stuff right, but I don't think so here. Maybe I'm missing your point.
5.56mm