Mark P. Keightley
Analyst in Public Finance
The Health Care and Education Reconciliation Act of 2010 (HCERA, P.L. 111-152) contains a provision that will subject certain individuals to a 3.8% “unearned income Medicare contribution” tax beginning in 2013.1 The tax has been labeled by some as a “home sales tax” or “real estate tax.” The tax, however, is not exclusively limited to real estate transactions. Additionally, contrary to some reports, the tax does not apply to all real estate transactions. Some taxpayers that dispose of real estate may be exempt from the tax either because of income limitations or because of an exclusion provided for primary residence home sales. Other taxpayers may be subject to the tax even if they do not dispose of real estate. This report provides a summary of the tax and generalized examples of its application.
Date of Report: October 7, 2010
Number of Pages: 5
Order Number: R41413
Price: $19.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
Analyst in Public Finance
The Health Care and Education Reconciliation Act of 2010 (HCERA, P.L. 111-152) contains a provision that will subject certain individuals to a 3.8% “unearned income Medicare contribution” tax beginning in 2013.1 The tax has been labeled by some as a “home sales tax” or “real estate tax.” The tax, however, is not exclusively limited to real estate transactions. Additionally, contrary to some reports, the tax does not apply to all real estate transactions. Some taxpayers that dispose of real estate may be exempt from the tax either because of income limitations or because of an exclusion provided for primary residence home sales. Other taxpayers may be subject to the tax even if they do not dispose of real estate. This report provides a summary of the tax and generalized examples of its application.
Date of Report: October 7, 2010
Number of Pages: 5
Order Number: R41413
Price: $19.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
Posts
