Effective January 1, 2013, a new 3.8% Medicare tax is being imposed on certain transactions. This new tax is the courtesy of Sec. 1411 of the Patient Protection and Affordable Care Act, P.L. 111-148 (informally referred to as Obamacare) and the Health Care and Education Reconciliation Act of 2010, P.L. 111-152.
While a 3.8% tax may seem insignificant to some, if the current Bush income tax rates are extended, this tax amounts to a 25% tax increase on dividends and long-term capital gains (LTCG).
Who will be subject to this tax? The tax will apply to [Read more…] about MEDICARE’S NEW 3.8% INVESTMENT TAX