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TexasGranny

IRS aims to clarify investment income tax under healthcare law

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Reuters

IRS aims to clarify investment income tax under healthcare law

(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 from stocks 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.

Both sets of rules will be published on Wednesday in the Federal Register.

The proposed rules are effective starting January 1. Before making the rules final, the IRS will take public comments and hold hearings

in April.

Together, the two taxes are estimated to raise $317.7 billion over 10 years, according to a Joint Committee on Taxation analysis released

in June.

To illustrate when the tax applies, the IRS offered an example of a taxpayer filing as a single individual who makes $180,000 in wage income

plus $90,000 from investment income. The individual's modified adjusted gross income is $270,000.

The 3.8 percent tax applies to the $70,000, and the individual would pay $2,660 in surtaxes, the IRS said.

The IRS plans to release a new form for taxpayers to fill out for this tax when filing 2013 returns.

The new rules leave some questions unanswered, tax experts said. It was unclear how rental income will be treated under the new rules,

said Michael Grace, managing director at Milbank, Tweed, Hadley & McCloy LLP law firm in Washington.

"The proposed regulations surely will increase tax compliance burdens for individuals," said Grace, a former IRS official. "There's clearly

some drafting left to be done."

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Thought some of you might be interested in this - should the dinar RV, some of us may find ourselves in a slightly higher tax bracket. :lol:

:rocking-chair:

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TG,

Some of us...? I believe it will be all of us :)

Well.. one way or the other, they get their hands in our pockets :) We work hard and punish hard too in taxes but be thankful that we have the money to pay it :)

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Sad part is you cant hide it. If you hold Dinar and cash it in they got your number. And by the way they do track your banking accounts to see how much you have and what you pay out and for what you spend it on.

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It really doesn't matter IMO as we are headed for total economic collapse.  The USD is going to crash.  You will be paying $18,000 for a loaf of bread.  Have a great day!  Thanks for the post!

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It really doesn't matter IMO as we are headed for total economic collapse.  The USD is going to crash.  You will be paying $18,000 for a loaf of bread.  Have a great day!  Thanks for the post!

 

then we will end up needing 25,000 dollar notes..... HAHA 

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Yep, we must pay our taxes on what we cash in...Then we when ya have a little cash on hand to do some travelin', where the dinar will be international...stay under the radar and look for assets...just thinkin' out loud...peace out

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Texas Granny-----Has there been any new updates to this since last year? Thanks for the post.

 

Looked for updates but could not find anything. Will watch for anything that comes up.

 

:cowboy2:

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