New tax on investment income effective Jan 1, 2013

[Dale Watkins]

Additional medicare taxes on earned and investment income of higher income (250K-MFJ) taxpayers starts in Jan. Are capital gains included in calculation of investment income? Thank you.

[ChEAr$]

Additional medicare taxes on earned and investment income of higher income (250K-MFJ) taxpayers starts in Jan. Are capital gains included in calculation of investment income? Thank you.

DOn't hold your breath, but... it ain't over till the fat lady sings.

[Burke]

Additional medicare taxes on earned and investment income of higher income (250K-MFJ) taxpayers starts in Jan. Are capital gains included in calculation of investment income? Thank you.

As it stands now, yes. Net capital gains over losses would be considered unearned investment income. The only exemption I know of is distributions from qualifed retirement plans, including pensions, such as 401(k)'s, IRAs, 401(a) plans, money purchase plans, 403(b)s and 457(b) plans.