Registered: Mar 2004
09-06-12 06:52 AM
Unearned income includes investment or portfolio income (interest, dividends, most capital gains, and annuities), royalties, rents, and passive activity income, as well as gains from the sale of property not used in an active business.
Quote from blackjack007:Back to the topic: how does the new 3.8% tax apply to profits on 1256 contracts?
1256 gains are capital gains. So if you have an adjusted gross income (AGI) exceeding $200,000 (single), $250,000 (married filing jointly), or $125,000 (married filing separately) you pay at the 3.8% rate.