Nemont, missed your post where you had the link for the realtors site. can you tell me where they got that information from? it's not in the bill that I read.
“CHAPTER 2A--MEDICARE TAX
“Sec. 1411. Imposition of tax.
“SEC. 1411. IMPOSITION OF TAX.
“(a) IN GENERAL.--Except as provided in subsection
(e)--
“(1) APPLICATION TO INpIDUALS.--In the
case of an individual, there is hereby imposed (in ad-
dition to any other tax imposed by this subtitle) for
each taxable year a tax equal to 3.8 percent of the
lesser of--
“(A) net investment income for such tax-
able year, or
“(B) the excess (if any) of--
“(i) the modified adjusted gross in-
come for such taxable year, over
“(ii) the threshold amount.
“(2) APPLICATION TO ESTATES AND TRUSTS.--
In the case of an estate or trust, there is hereby im-
posed (in addition to any other tax imposed by this
subtitle) for each taxable year a tax of 3.8 percent
of the lesser of--
“(A) the undistributed net investment in-
come for such taxable year, or
“(B) the excess (if any) of--
“(i) the adjusted gross income (as de-
fined in section 67(e)) for such taxable
year, over
“(ii) the dollar amount at which the
highest tax bracket in section 1(e) begins
for such taxable year.
“(b) THRESHOLD AMOUNT.--For purposes of this
chapter, the term `threshold amount' means--
“(1) in the case of a taxpayer making a joint
return under section 6013 or a surviving spouse (as
defined in section 2(a)), $250,000,
“(2) in the case of a married taxpayer (as de-
fined in section 7703) filing a separate return, 1/2 of
the dollar amount determined under paragraph (1),
and
“(3) in any other case, $200,000.
“(c) NET INVESTMENT INCOME.--For purposes of
this chapter--
“(1) IN GENERAL.--The term `net investment
income' means the excess (if any) of--
“(A) the sum of--
“(i) gross income from interest, divi-
dends, annuities, royalties, and rents, other
than such income which is derived in the
ordinary course of a trade or business not
described in paragraph (2),
“(ii) other gross income derived from
a trade or business described in paragraph
(2), and
“(iii) net gain (to the extent taken
into account in computing taxable income)
attributable to the disposition of property
other than property held in a trade or
business not described in paragraph (2),
over
“(B) the deductions allowed by this sub-
title which are properly allocable to such gross
income or net gain.
“(2) TRADES AND BUSINESSES TO WHICH TAX
APPLIES
.--A trade or business is described in this
paragraph if such trade or business is--
“(A) a passive activity (within the meaning
of section 469) with respect to the taxpayer, or
“(B) a trade or business of trading in fi-
nancial instruments or commodities (as defined
in section 475(e)(2)).
“(3) INCOME ON INVESTMENT OF WORKING
CAPITAL SUBJECT TO TAX
.--A rule similar to the
rule of section 469(e)(1)(B) shall apply for purposes
of this subsection.
“(4) EXCEPTION FOR CERTAIN ACTIVE INTER-
ESTS IN PARTNERSHIPS AND S CORPORATIONS
.--In
the case of a disposition of an interest in a partner-
ship or S corporation--
“(A) gain from such disposition shall be
taken into account under clause (iii) of para-
graph (1)(A) only to the extent of the net gain
which would be so taken into account by the
transferor if all property of the partnership or
S corporation were sold for fair market value
immediately before the disposition of such inter-
est, and
“(B) a rule similar to the rule of subpara-
graph (A) shall apply to a loss from such dis-
position.
“(5) EXCEPTION FOR DISTRIBUTIONS FROM
QUALIFIED PLANS
.--The term `net investment in-
come' shall not include any distribution from a plan
or arrangement described in section 401(a), 403(a),
403(b), 408, 408A, or 457(b).
“(6) SPECIAL RULE.--Net investment income
shall not include any item taken into account in de-
termining self-employment income for such taxable
year on which a tax is imposed by section 1401(b).
“(d) MODIFIED ADJUSTED GROSS INCOME.--For
purposes of this chapter, the term `modified adjusted gross
income' means adjusted gross income increased by the ex-
cess of--
“(1) the amount excluded from gross income
under section 911(a)(1), over
“(2) the amount of any deductions (taken into
account in computing adjusted gross income) or ex-
clusions disallowed under section 911(d)(6) with re-
spect to the amounts described in paragraph (1).
“(e) NONAPPLICATION OF SECTION.--This section
shall not apply to--
“(1) a nonresident alien, or
“(2) a trust all of the unexpired interests in
which are devoted to one or more of the purposes
described in section 170(c)(2)(B).”.
(2) ESTIMATED TAXES.--Section 6654 of the
Internal Revenue Code of 1986 is amended--
(A) in subsection (a), by striking “and the
tax under chapter 2” and inserting “the tax
under chapter 2, and the tax under chapter
2A”, and
(B) in subsection (f)--
(i) by striking “minus” at the end of
paragraph (2) and inserting “plus”, and
(ii) by redesignating paragraph (3) as
paragraph (4) and inserting after para-
graph (2) the following new paragraph:
“(3) the taxes imposed by chapter 2A, minus”.
(3) FEDERAL SUPPLEMENTARY MEDICAL IN-
SURANCE TRUST FUND
.--Section 1841(a) of such
Act (42 U.S.C. 1395t(a)) is amended by adding at
the end the following: “There are hereby appro-
priated to the Trust Fund, out of any moneys in the
Treasury not otherwise appropriated, amounts equiv-
alent to 100 per centum of the taxes imposed by
1411 of the Internal Revenue Code of 1986 with re-
spect to income described in such section and re-
ported to the Secretary of the Treasury or the Sec-
retary's delegate on tax returns under subtitle F of
such Code, as determined by the Secretary of the
Treasury by applying the applicable rate of tax
under such section to such income. The amounts ap-
propriated by the preceding sentence shall be trans-
ferred from time to time from the general fund of
the Treasury to the Trust Fund, such amounts to be
determined on the basis of estimates by the Sec-
retary of the Treasury of the taxes, specified in the
preceding sentence, paid to or deposited into the
Treasury; and proper adjustments shall be made in
amounts subsequently transferred to the extent prior
estimates were in excess of or were less than the
taxes specified in such sentence.”.
(4)
CLERICAL
AMENDMENT
.--The
table
of
chapters for subtitle A of chapter 1 of the Internal
Revenue Code of 1986 is amended by inserting after
the item relating to chapter 2 the following new
item:
“CHAPTER 2A--MEDICARE TAX”.
(5)
EFFECTIVE
DATES
.--The
amendments
made by this subsection shall apply to taxable years
beginning after December 31, 2012.
(b) EARNED INCOME.--
(1) THRESHOLD.--
(A)
FICA.--Paragraph
(2)
of
section
3101(b) of the Internal Revenue Code of 1986,
as added by section 9015 of the Patient Protec-
tion and Affordable Care Act and amended by
section 10906 of such Act, is amended by strik-
ing “and” at the end of subparagraph (A), by
redesignating subparagraph (B) as subpara-
graph (C), and by inserting after subparagraph
(A) the following new subparagraph:
“(B) in the case of a married taxpayer (as
defined in section 7703) filing a separate re-
turn, 1/2 of the dollar amount determined under
subparagraph (A), and”.
(B) SECA.--Section 1401(b)(2) of the In-
ternal Revenue Code of 1986, as added by sec-
tion 9015 of the Patient Protection and Afford-
able Care Act and amended by section 10906 of
such Act, is amended--
(i) in subparagraph (A), by striking
“and” at the end of clause (i), by redesig-
nating clause (ii) as clause (iii), and by in-
serting after clause (i) the following new
clause:
“(ii) in the case of a married taxpayer
(as defined in section 7703) filing a sepa-
rate return, 1/2 of the dollar amount deter-
mined under clause (i), and”, and
(ii) in subparagraph (B), by striking
“under clauses (i) and (ii)” and inserting
“under clause (i), (ii), or (iii) (whichever is
applicable)”.
(2) ESTIMATED TAXES.--Section 6654 of the
Internal Revenue Code of 1986 is amended by redes-
ignating subsection (m) as subsection
and by in-
serting after subsection (l) the following new sub-
section:
“(m) SPECIAL RULE FOR MEDICARE TAX.--For pur-
poses of this section, the tax imposed under section
3101(b)(2) (to the extent not withheld) shall be treated
as a tax imposed under chapter 2.”.
(3) EFFECTIVE DATE.--The amendments made
by this subsection shall apply with respect to remu-
neration received, and taxable years beginning after,
December 31, 2012.
SEC. 1403. DELAY OF LIMITATION ON HEALTH FLEXIBLE
SPENDING
ARRANGEMENTS
UNDER
CAFE-
TERIA PLANS.
(a) IN GENERAL.--Section 10902(b) of the Patient
Protection and Affordable Care Act is amended by strik-
ing “December 31, 2010” and inserting “December 31,
2012”.
(b) INFLATION ADJUSTMENT.--Paragraph (2) of sec-
tion 125(i) of the Internal Revenue Code of 1986, as
added by section 9005 of the Patient Protection and Af-
fordable Care Act and amended by section 10902 of such
Act, is amended--
(1) in the matter preceding subparagraph (A),
by striking “December 31, 2011” and inserting
“December 31, 2013”, and
(2) in subparagraph (B), by striking “2010”
and inserting “2012”.
copied from the bill I read.
