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IRS aims to clarify investment income tax under healthcare law

Home - by - December 4, 2012 - 09:30 America/New_York - 6 Comments


(Reuters) – The Internal Revenue Service has released new rules for investment income taxes on capital gains and dividends earned by high-income individuals that passed Congress as part of the 2010 healthcare reform law.

The 3.8 percent surtax on investment income, meant to help pay for healthcare, goes into effect in 2013. It is the first surtax to be applied to capital gains and dividend income.

The tax affects only individuals with more than $200,000 in modified adjusted gross income (MAGI), and married couples filing jointly with more than $250,000 of MAGI.

The tax applies to a broad range of investment securities ranging fromstocks and bonds to commodity securities and specialized derivatives.

The 159 pages of rules spell out when the tax applies to trusts and annuities, as well as to individual securities traders.

Released late on Friday, the new regulations include a 0.9 percent healthcare tax on wages for high-income individuals.




  1. Papadoc

    December 4th, 2012

    And when investment capital starts disappearing what will the progressives blame? “Those greedy bastards!” Taxation 101–whatever is taxed is disincentivized. If you tax a thing, you will get less of that thing. Every damned time.

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  2. Twellsy

    December 4th, 2012

    See. Even raising the tax rates on the wealthy ($250,000?) isn’t enough. They are going to try and ruin any money-maker here in the U.S. any way they can.

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  3. F.D.R. in Hell

    December 4th, 2012

    Don’t hold your breath until there’s a tax revolution. The sheep will put up with anything and everything. Just like 1942, but without a World War being fought. Amazing. Sad, but amazing.

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  4. Carlos The Jackal

    December 4th, 2012

    Oh, the IRS is going to “clarify” the rules?
    Gee, that just fills me with confidence.

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  5. Stranded in Sonoma

    December 4th, 2012

    The art of taxation is to pluck the maximum number of feathers from the chicken with the minimum amount of clucks.

    Repeal the 16th amendment and pass the FairTax.

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  6. Cynic

    December 4th, 2012

    Eventually the IRS code will get simplified to one line:

    “Send us all your money”

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