DGAA bLAWg

The Effect of the Affordable Care Act on Income Taxes

Web Admin - Tuesday, January 28, 2014

illinois obamacare tax lawyerThe Affordable Care Act (ACA or "ObamaCare") is a sweeping reform that touches many different areas of the law. One particular area that it impacts is the income tax structure. The law makes many small changes, such as increasing the threshold for deducting a medical expense to 10 percent of a person's adjusted gross income, or adding a new 0.9 percent tax to wages above $200,000. 

But, one particular change can have a large effect on income from real estate sales and trusts. The ACA adds a new 3.8 percent tax on a person's net investment income. But, this new tax only applies to certain people, and often, but not always, those in higher tax brackets.

The Effect on Real Estate Sales

The 3.8 percent tax applies to some sales of real estate, but not to all sales. First, the tax only applies to people making more than $200,000 a year or $250,000 for married couples filing jointly. Even for those people, not all sales qualify. This is because the first $250,000 of profit on the sale of the home does not count as income if the home is the person's primary residence.

And, that number goes up to $500,000 for married couples. A primary residence is a home that has acted as the sellers “main home” for two of the last five years. By way of example, suppose a married couple making over $250,000 a year sold their primary residence for a net profit of $650,000. They would only pay the 3.8 percent tax on the $150,000 in profits that exceed the $500,000 cap.

The Effect on Trusts

Even though the tax only applies to individuals making more than $200,000, it can also affect trusts with more than approximately $12,000 in net investment income, regardless of the beneficiary's income. This means that the tax can affect people earning less than $200,000 if they have an interest in such a trust. In this instance, the 3.8 percent tax applies to all net investment income in excess of the $12,000 cap. However, the law contains many exemptions and exceptions. For instance, certain types of trusts that do not qualify as trusts for purposes of income tax also fall outside of this law.

If you have questions about how the ACA affects your taxes or think you may be subject to the new net investment income tax, contact an Arlington Heights tax attorney today. Call 847-934-6000 to speak to a member of our team. We serve many Northwest Suburban areas including Rolling Meadows, Des Plaines, Crystal Lake, and other nearby communities.

About the Author: Attorney Jay Andrew is founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.



Recent Posts


Tags

medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers murder defense speeding Kenilworth estate planning attorney Rolling Meadows real estate attorney pedestrian injuries, pedestrian fatality in terrorem provision sole proprietorship internet Rolling Meadows insurance dispute lawyers, insurance dispute surgical mistakes Rolling Meadows insurance dispute lawyers special needs trust installment contracts income distribution deducation crossover accidents Barrington criminal lawyer traffic crimes Illinois Wage Payment and Collection Act problem employees car crash real estate lawyer pedestrian accident civil litigation attorney Rolling Meadows employment law attorney Buffalo Grove insurance claim dispute lawyers Des Plaines DUI attorney Transfer on Death Instrument blended families landlord texting and driving head on collisions minimum wage Illinois Transfer on Death Instrument Illinois construction accident attorney Crystal Lake traffic attorney Palatine insurance lawyer traffic offenses Deer Park DUI lawyer Buffalo Grove personal injury attorney Riverwoods estate planning lawyer motorcycle accident Palatine criminal defense lawyer Buffalo Grove traffic lawyers real estate leasing drugs probate fees Illinois traffic laws Forcible Entry Illinois traffic attorneys Whistleblower Claims Des Plaines claims law firm Illinois motorcycle accident lawyer gift taxes Illinois living will denied insurance claim real estate zoning life insurance Illinois criminal defense attorney food poisoning Illinois insurance claim attorney Illinois Probate Act of 1975 Crystal Lake bike accident lawyer healthcare claims Rolling Meadows litigation lawyer reckless homicide traffic tickets sexual harassment preventing accidents privacy laws employment law Crystal Lake accident attorney foreclosure Illinois wills and trusts attorneys Long Grove real estate lawyer overtime violations unauthorized overtime FSLA DUI attorney Illinois probate lawyer Barrington attorney Arlington Heights lawyer Palatine business attorney civil litigation Illinois medical malpractice attorney DNR Fourth of July Palatine traffic lawyer Rolling Meadows accident lawyer fault based insurance Illinois speeding lawyer Illinois civil litigation lawyer Schaumburg Palatine employment lawyer forming a corporation in Illinois Illinois personal injury lawyers Rolling Meadows business lawyer Schaumburg estate planning attorney Crystal Lake car accident attorney fiduciary rule car crashes Arlington Heights TBI attorney employee discrimination Schaumburg car accident attorney Illinois business law atorneys Colin H. Gilbert filing a medical malpractice claim Barrington criminal defense lawyer IRA benefits homestead rights life insurance lawyer residential real estate Illinois traffic accident lawyer Illinois registered agent Rolling Meadows personal injury attorney Arlington Heights employment attorney Illinois home inspection Deer Park criminal attorney trusts Illinois red light cameras BUI real estate attorney rollover accidents controlled substance Arlington Heights tax lawyer Illinois employment lawyer healthcare Arlington Heights wills and trusts lawyer Illinois Smoke Detector Act personal injury accidents Thanksgiving Palatine trusts lawyer civil rights violation Schaumburg personal injury attorney DMV Buffalo Grove real estate attorney suspended license workers compensation Palatine construction attorney liens Chicago biking tips new real estate form Illinois jet ski accident lawyer estate planning Arlington Heights real estate lawyer medical research slip and fall accidents back injuries personal injury social media after death Barrington estate planning lawyer contracts traffic accidents Rolling Meadows boating crash lawyer Des Plaines insurance attorney Palatine traffic accidents Illinois attorney texting while driving estate planning attorney trucking accidents personal injury claim Schaumburg employment attorney Illinois elder law attorney advance healthcare directive comp time product liability Illinois LLC creation Illinois estate planning truck collisions wills creditors Crystal Lake business law attorneys license insurance adjusters underinsured motorist Arlington Heights Attorney Palatine estate planning lawyer PTSD Illinois insurance disputes Palatine elder law attorney Schaumburg traffic lawyer criminal probate process Buffalo Grove injury lawyer Buffalo Grove criminal defense lawyer Colin Gilbert Palatine employment law lawyer Inverness injury lawyer Des Plaines personal injury lawyers Detainer Actions Des Plaines personal injury attorney Barrington employment law attorney wills and trusts insurance claim delay employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers Deer Park traffic lawyer Palatine injury attorney car collision Rolling Meadows marijuana attorney jet ski accidents health insurance dispute Schaumburg criminal law attorney severance agreements rollover car crashes breach of contract marijuana crimes attorney digital evidence Schaumburg personal injury lawyers trauma after an accident loss of consortium Mt Prospect Attorney Chicago car accident lawyer child safety anesthesia errors appealing an insurance claim breathalyzer test School Visitation Rights Act defective products icy parking lots Arlington Heights insurance attorney traumatic brain injury Illinois insurance lawyer probate Affordable Care Act Palatine personal injury lawyer insurance agent negligence Palatine corporate law attorneys small business Des Plaines drug lawyer Crystal Lake pedestrian accident lawyer mortgage Illinois traffic attorney Landlord Tenant Ordinance Barrington real estate lawyer Illinois small business corporate law Retaliatory Discharge capital gains tax Schaumburg estate planning lawyer insurance dispute attorney Barrington Traffic Lawyer business litigation Illinois trusts attorney rest breaks pedestrian accidents POA Rolling Meadows traffic law firm Des Plaines real estate lawyer Arlington Heights estate planning attorney agent power of attorney Rolling Meadows elder abuse fatal car accidents Arlington Heights car accident lawyer Rolling Meadows medical malpractice lawyers preventable medical errors Rolling Meadows criminal lawyer Crystal Lake personal injury lawyer distracted driving accident victims Crystal Lake medical malpractice lawyer Des Plaines accident attorney Inverness civil lawyer Illinois job attorney probate lawyer Crystal Lake medical malpractice attorneys IRELA Des Plaines motorcycle accident attorney workers comp low-ball insurance settlement operating agreements Schaumburg construction accident lawyer construction accidents Inverness elder law lawyer Mount Prospect wills and trusts lawyers changes to mortgage law Policy Cancellation Chicago corporate attorney insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys Des Plaines medical malpractice attorney pregnant women Rolling Meadows personal injury lawyers real estate spinal cord injuries boating DUI Barrington medical malpractice lawyers IRA trust transfer Illinois corporate lawyer boating under the influence construction contracts Barrington boating accident attorney personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys Inverness real estate lawyer Chicago estate planning drunk driving ObamaCare Crystal Lake injury attorney insurance claims Buffalo Grove medical malpractice lawyers Illinois personal injury attorney Deer Park motorcycle accident lawyer hit and run accident Joliet general practice lawyers Arlington Heights criminal lawyer bicycle dooring accidents traffic violations Illinois law Home Sale Contingencies IRS Illinois Human Rights Act underage DUI involuntary manslaughter Arlington Heights employment law attorneys Palatine Attorney Chicago insurance claim attorneys Arlington Heights medical malpractice lawyer estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, drunk driving statistics Crystal Lake personal injury attorney Illinois car accident attorney wage theft Rolling Meadows probate lawyer Rolling Meadows Attorney Super Mario whistleblower protections pay when paid contract insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys dynasty trusts Kenilworth estate planning attorneys deed transfer living wills Rolling Meadows Traffic Lawyer pet bites Crystal Lake tax lawyer Do Not Resuscitate auto accidents mass shooting Chicago will attorney, social media platforms, Illinois estate planning lawyer, insurance claim dispute Buffalo Grove probate lawyer Chicago attorney overtime pay Schaumburg employment law attorneys marijuana motorcycle accident lawyer Buffalo Grove traffic attorney digital assets Des Plaines clemency Arlington Heights trucking lawyer Illinois employment law attorneys workplace sexual harassment Deer Park personal injury lawyer unfunded trust Chicago insurance law firm attorney fees driving investment property foreclosed rental property Crystal lake insurance dispute attorney traumatic brain injuries caregiver medical marijuana owner responsibility natural gas explosion Illinois insurance claim dispute lawyer Illinois personal injury lawyer license revocation Buffalo Grove car accident lawyer underfunded trust insurance claim denials spinal cord injury Crystal Lake pet attorney insurance denial appeals financial advisors Inverness real estate attorney Des Plaines pet law attorney Barrington personal injury attorney medical malpractice claims insurance dispute insurance negligence Des Plaines tax law firm Inverness personal injury attorney pet law college kids federal regulations for LLCs Illinois employment laws criminal law Rolling Meadows car accident lawyers insurance disputes Crystal Lake will lawyer Illinois workers compensation attorney trucking accident lawyers Schaumburg personal injury lawyer Deer Park workers compensation lawyer bad faith insurance claims meal breaks personal injury claims Illinois estate planning law firm Palatine workers compensation lawyer South Barrington real estate attorney Employment Discrimination Law no contest clauses Home Remodeling Repair Act paid sick leave Long Grove wills and trusts attorneys Chicago employment lawyer job lawyers Arlington Heights pedestrian accidents Schaumburg Attorney Arlington Heights car crash attorneys Fair Labor Standards Act employment contract Palatine civil litigation lawyer commercial leasing Palatine probate lawyer Illinois Workers’ Compensation Commission Inverness DUI lawyer Mount Prospect real estate lawyer Illinois workplace discrimination attorney manufacturing deadly crashes Schaumburg drug defense lawyer living trust bicycle accidents criminal record Rolling Meadows drug defense attorney estate tax Schaumburg probate attorney Schaumburg real estate lawyer car crash injuries Illinois personal injury subcontractor DUI defense Mount Prospect elder law attorney modern family estate planning Arlington Heights injury attorney drug crime Family Medical Leave Act Arlington Heights wills and trusts attorney Illinois real estate loopholes license suspension car accident lawyers Schaumburg corporate attorney hands free device Arlington Heights wills and trusts lawyers Rolling Meadows traffic attorney Crystal Lake traffic lawyer Palatine real estate lawyer personal injury attorney bike accident Illinois estate planning attorney Illinois business lawyer Jay Andrew Palatine civil attorney Illinois medical malpractice case drug possession Illinois employment law firm home inspection lawyer Arlington Heights traffic attorney estate plan Schaumburg elder law lawyer insurance attorney tax attorney living trust vs will federal crimes right to work Barrington business law firm Rolling Meadows personal injury lawyer GM ignition switches construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Long Grove estate planning Arlington Heights accident attorney condo association drug crimes estate planning for college students DUI denial of life insurance golf accidents guardianship attorney Attorney Ken Apicella elder law Crystal Lake employment law attorney license reinstatement digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers Illinois employment law Illinois traffic ticket lawyer Illinois bicycle safety digital information insurance agents Rolling Meadows insurance lawyer wrongful death Schaumburg insurance lawyers Inverness probate lawyer car accident lawyer Arlington Heights personal injury lawyer Illinois employment law attorney Long Grove real estate attorney vacation home fines llinois Real Estate Lawyers Association Chicago will attorney uninsured motorist Chicago trucking accident attorney boating accidents Rolling Meadows employment law attorneys Rolling Meadows estate planning attorney Crystal Lake estate planning lawyer rumble strips power of attorney for healthcare Illinois injury lawyer Rolling Meadows DUI lawyer employee rights Arlington Heights personal injury attorney independent contractor Illinois real estate lawyer probate claims process Schaumburg criminal attorney employee misclassification Chicago traffic lawyer Barrington employment attorney Rolling Meadows criminal attorney living trust benefits Barrington drug crime attorney Crystal Lake employment lawyer Illinois will lawyer drug crimes lawyer Buffalo Grove personal injury lawyer Barrington Illinois estate planning lawyer nursing home negligence real estate attorneys products liability Illinois tax attorney Rolling Meadows employment attorney startup company murder charges BAIID estate planning lawyer distracted driving accidents Illinois rollover accident lawyers life insurance claims cell phone Barrington workers compensation attorney insurance claim dispute attorney wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace sexual images Illinois insurance claims lawyers Des Plaines real estate attorney commercial real estate BAC Schaumburg estate attorney ACA Crystal Lake insurance lawyer Schaumburg civil litigation attorney cell phone tower data insurance claim Inverness corporate attorney compensatory time Barrington injury attorney natural gas life insurance policy condo South Barrington real estate lawyer Schaumburg injury lawyer taxes Chicago estate planning lawyer Chicago employment attorney Buffalo Grove employment lawyer LLCs insurance claim denial Illinois driving without license TBI Long Grove estate planning attorneys Rolling Meadows corporate lawyer Crystal Lake car accident lawyer swimming pools landlord tenant law senior citizens Crystal Lake law firm jet ski Deer Park employment law attorney trench injuries probate claims comparative negligence traffic deaths pizza emoji institutional trustee Des Plaines Traffic Lawyer dealing with problem employees eluding a police officer denied insurance claims ken apicella liability Crystal Lake civil litigation lawyer expungement Palatine corporate attorney first degree murder field sobriety test Inverness accident lawyer car accidents medical malpractice Illinois defective products attorney dram shop law Illinois insurance dispute lawyers Barrington employment law firm Illinois medical malpractice lawyers unpaid assessment pedestrian-automobile accident Illinois insurance attorney Illinois Sales Representative Act workers compensation benefits trustee Rolling Meadows tax attorney Illinois employment attorneys Barrington estate planning attorney holiday statistics Arlington Heights Traffic Lawyer disability benefits Barrington personal injury lawyer criminal defense Palatine punch death employment attorney Legal Info real estate closing Inverness traffic law firm Illinois lawyer Arlington Heights wills and trusts attorneys Long Grove estate planning attorney Deer Park traffic accident attorney hiring employees estate attorney real estate contract traffic laws automated cars traffic violations defense DUI penalities Buffalo Grove law firm work unions Illinois wrongful termination lawyer Liquor Control Act Illinois collections attorney defective products lawyer Des Plaines drug crimes lawyer Crystal Lake medical malpractice law firm insurance denials Illinois workers compensation lawyer blood alcohol content Rolling Meadows insurance attorney employment lawyer Illinois workplace lawyer premises liability FMLA consent to a search Illinois trucking safety Food and Drug Administration's Food Safety Modernization Act Federal Food Drug and Cosmetic Act Illinois DUI attorney personal injury law firm Illinois mortgages employees vacation home revenge porn Buffalo Grove corporate attorney fiduciary rule delay Illinois medical malpractice claim dog bites Deer Park accident attorney estate planning trusts Exclusions Inverness estate planning lawyer Illinois pet lawyer Palatine law firm Class A misdemeanor liability claims Schaumburg wrongful death attorney Deer Park medical malpractice attorney Illinois insurance claim dispute lawyers gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys medical malpractice compensation digital media accounts, estate planning, Arlington Heights estate planning attorney, Self-Directed IRA Accounts wrongful termination Illinois wills and trusts employment law, Illinois employment laws Illinois Illinois employee rights attorney. Barrington litigation attorney Des Plaines criminal attorney Deer Park real estate law firm cell phone accidents Crystal Lake employment attorney Des Plaines collections attorney Inverness insurance attorney Illinois pedestrian accident attorney irrevocable trust Des Plaines personal injury lawyer privacy Palatine drug lawyer Barrington civil litigation attorney slip and fall medication errors commercial leases personal injury lawyer car accident brain injury Illinois boating accident lawyer Crystal Lake criminal defense attorney accidental death benefits Schaumburg medical malpractice lawyer DGAA Chicago lawyer CAM pain and suffering caretaker rights rent to own real estate contracts Des Plaines civil attorney murder trust payments unpaid overtime Kenilworth estate planning lawyer employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, Des Plaines injury law firm Palatine employment attorney

Archive