Could the NIIT apply to the sale of your home?
$225.00
Description
Abstract: The 3.8% net investment income tax (NIIT) continues to create confusion. One aspect of the NIIT (also known as the Medicare contribution tax) that’s widely misunderstood is its impact on the sale of a home. The NIIT is not a sales tax. It applies, if at all, only to profits from a home sale, not to gross proceeds. And it doesn’t apply to profits eligible for the Internal Revenue Code Section 121 home sale exclusion. Certain home sales are subject to the NIIT, however. This article looks at how the NIIT applies to home sales (with a sidebar offering an example) and suggests strategies for minimizing the tax.
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