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by CareyBot

Starting in 2013, a new 3.8 percent Medicare tax will be imposed on investment and rental income earned by higher-income taxpayers. Funds from the tax will be used to help pay for the nation's financially troubled Medicare program. This is a major change in the tax law that will affect many landlords. For higher-income taxpayers, it will make rental property a less attractive investment than it used to be. However, most real estate professionals who own rental properties will be exempt from this tax. Here are the basics about the new tax you should understand now. Only high-income taxpayers affected The new tax applies only to people with relatively high incomes. If you're single, you must pay the tax only if your adjusted gross income (AGI) is more than $200,000. Married ...