November 19, 2014

 The "Health Care and Education Reconciliation Act of 2010," which amended the "Affordable Care Act," created a 3.8% tax on net investment income received after 2012, including capital gains, for individuals with AGIs over $200,000 and those filing joint returns with an AGI exceeding $250,000. The application of this surtax to the distributions paid by charitable remainder trusts (CRTs) and gift annuities was a source of confusion throughout most of 2013 with the final regulations not published until December, 2013.

Download Article: Application of the 3.8% Medicare Tax on Investment Income to Distributions from Charitable Remainder Trusts and Gift Annuities

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