Obama Care – The new 20% Capital Gains tax applies to taxpayers with AGI’s (adjusted gross income) over the respective minimum income limit which would trigger an additional 5% tax on their income.
Capital Gains taxes also apply to the sale of one’s personal residence if the profit from the sale exceeds the current taxable exemption of:
- $250,000 for individuals
- $500,000.00 for couples
Since there are numerous exceptions and tax implications, we highly suggest that competent income tax consultation be sought to determine any tax liability from the sale of real estate.
There is currently no governmental determination as to the possibility of “deferring” the 3.8% Medicare tax by using the 1031 tax free exchange. Obama Care.
We will report if and when the Internal Revenue Service issues an opinion as to the availability of deferring the new taxes in a 1031 tax free exchange.
In our next Blog we will take a look at new California tax laws that are now are in effect for 2013. We will give you a hint, they’re going up. Obama Care
Our Office Hours