Health & Fitness
The Effect of the Affordable Care Act on Income Taxes
The Affordable Care Act (ACA or "ObamaCare") is a sweeping reform that touches many different areas of the law. One particular area that it impacts is the income tax structure. One particular change can have a large effect on income from real estate sales and trusts. The ACA adds a new 3.8 percent tax on a person's net investment income. The 3.8 percent tax applies to some sales of real estate, but not to all sales.
First, the tax only applies to people making more than $200,000 a year or $250,000 for married couples filing jointly. Even though the tax only applies to individuals making more than $200,000, it can also affect trusts with more than approximately $12,000 in net investment income, regardless of the beneficiary's income. This means that the tax can affect people earning less than $200,000 if they have an interest in such a trust.
If you have questions about how the ACA affects your taxes or think you may be subject to the new net investment income tax, contact a member of DGAA Law, LLC today. Call 847-934-6000 to speak to a member of our team.
To read this blog in its entirety, click on the following link; http://www.dgaalaw.com/dgaablawg/illinois-tax-attorney-affordable-care-act