Medicare Surtax May Become Added Property Tax On Vacation Home And Investment Property Sales

Investors making more than $250,000 per couple or $200,000 individually will be subject to the tax.

Capital gains resulting from the sale of a primary residence totaling less than $500,000 per couple or $250,000 individually will continue to be excluded. Beyond those exclusions, however, investors may be subject to the tax.

A $530,000 capital gain on the sale of a primary residence would result in a taxable amount of $30,000. If joint income is more than $250,000, the surtax will apply to that $30,000 gain.

If their income is $290,000 ($40,000 over the income threshold), the surtax will apply to the lower amount of $30,000 made on the sale of the house. Realized gains of $550,000, means the surtax would apply to the $40,000 worth of income above the threshold instead of the $50,000 taxable gain.

A vacation home sale yielding a $60,000 capital gain would fall outside of the primary residence exclusion. If the couple’s joint income is $225,000, the $60,000 gain would be added to make that $285,000.

Subtract the $250,000 threshold from that and you have a capital gain subject to the surtax of $35,000.

The rules are even more complex if the vacation home is a rental. The IRS still has a lot of guidance to give on application of the surtax, especially on capital gains on property sales.

It’s a good opportunity to develop a relationship with a trusted tax advisor to work with your clients who may be selling property after the first of the year. Or you may wish to encourage them to sell the property before year end.

This Website Is For Financial Professionals Only

A Strategically Focused CE Curriculum

With classes approved for over a decade by the CFP Board, IWI, and NASBA, Advisors4Advisors CE classes are an optimal knowledge stream for CFP^®, CIMA^®, CPA, CPA/PFS^®, CFA^®, and other practitioners. It's not a grab bag of speakers willing to sponsor CE content. Nor is it a one-man CE course. It's a group of subject matter experts with amazing communication skills and a history of thought leadership that, together, give advisors a well-rounded knowledge system for running a professional practice ethically and intelligently.

CE Since October 2008

A4A CE classes for financial professionals began in October 2008, the week Lehman Bros. collapsed. Initially billed as “The Financial Crisis Webinar Series,” A4A connects advisors with authoritative sources on investing, tax, and financial planning, chosen by A4A Editor Andrew Gluck, a veteran financial reporter. A4A members get a stream of CE classes for an advisor who:

holds a CFP®, CIMA®, CPA, CPA/PFS, CFA or other designation requiring CE annually

values monthly CE classes by Fritz Meyer, Craig Israelsen, Bob Keebler, Frank Murtha, or Andrew Gluck

diversifies a core of client portfolios in low-expense funds

invests based on MPT and economic fundamentals

advises on tax and financial planning as well as investing

needs financial counseling skills

wants the Certified Financial Counselor™ designation

is building a brand as a thought leader locally or in a niche

wants the facts when bad news breaks

wants CE aligned with a content marketing system

wants 24/7 access to CE on-demand

insists on objective evidenced-based tax and investment planning analysis

MEMBER REVIEWS

William Desormeau, Jr.

It is not possible for me to overstate the cumulative value that Craig, Bob and Fritz have added for over 10 years to my investment advisory practice, as well as for personal and family financial planning. A4A gets my highest recommendation

Lynn Najman, CFP^®

I’ve subscribed to A4A since its inception, and always find it intellectually stimulating and on point. It’s one of the few CE solutions out there that doesn’t waste my time by pushing product or talking down to me.

PeteDeacon-CPA-CFP

Pete Deacon, CPA, CFP^®

A4A has had a profound effect on my business. Since 2009, I’ve relied on the consistent messaging and updates to run my business successfully. Being able to present the information from Bob, Fritz, and Craig's ongoing CE webinars has been a significant benefit.

fredericMayersen-phd-cfp

Fredric Mayerson, MBA, PhD, CFP^®

I've been a financial professional and professor of finance for 35 years and find Fritz Meyer and Robert Keebler to be among the most engaging, incredibly knowledgeable, and experienced presenters I’ve encountered. They deliver an extraordinary amount of information in an extremely interesting way — sequentially and developmentally, utilizing pedagogical tools and techniques that few possess. A4A to is the most consistently excellent CE program available.

Ron Roge, MS, CFP^®

I’ve been attending A4A many years because the CE classes are outstanding, and my time is valuable. Though I have over 35 years of experience, I’m always learning something new on A4A. I attend fewer conferences now because the CE is generally not advanced. If you want to learn from the best, in a faster, easier, and less expensive way, I highly recommend A4A.

John R. Day, CPA/PFS^®

I’ve been a member since 2011 and never miss the monthly webinars with Fritz Meyer. I appreciate Fritz’s independent views on the economy and markets and Bob Keebler keeps me updated on excellent tax planning ideas. A4A is a great value!

Norman Politziner, CFP

I wouldn't miss a Fritz Meyer webinar unless my pants were on fire. I've relied on Andrew Gluck's knowledge systems --client communications and CE -- for two decades. It's simply the best solution for tax, financial, investment, and risk-management professionals.^®

Dan Hawley, CFP^®

A4A, for over a decade, has been a great resource for useful and accurate information and CE. A4A and Advisor Products are bargains for an advisory practice.

KevinBrosious-CFP-CPA-PFS

Kevin Brosious, MBA, CFP^®, CPA/PFS^®

I get CPA CE credit and CFP credit for the webinars. But not only that, the A4A content is terrific