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Five ways to avoid the new Obamacare tax

December 1, 2013

Watch out! The new Obamacare tax is coming.

That’s right. The new 3.8 % Obamacare tax on net investment and passive income makes its unwelcome debut on your 2013 tax return.

You may hear the new tax referred to as the:

  • Obamacare tax
  • Net investment income tax (NIIT)
  • Medicare tax

Whatever you call it, the new tax can hurt you a lot, unless you know what you’re doing.

That’s where my new article comes in. It will explain the new tax in easy-to-understand language and provide you with five tax-deduction strategies for minimizing the impact of the tax.

The bottom line? Act now, while there’s still time, and read my new article titled Tax Tips: Five Strategies to Avoid the New 3.8 Percent Obamacare Tax.

Five strategies for beating the 3.8% Obamacare tax:

  1. Stay below the threshold. The best way to reduce your Obamacare tax bill is to increase your business deductions and keep your investment income below the thresholds specified by law. We’ll tell you what those thresholds are and show you how to save big money when you read the full article.
  2. Shelter income with the “Lesser-Of Rule.” Under this important IRS rule, you pay the Obamacare tax on the lesser of two investment-income amounts. We’ll tell you what they are and how to be a tax-wise winner when you read the full article.
  3. Unlock the power of Section 1031. A Section 1031 transaction (much easier than you think) is a great way to defer taxes and help you avoid paying the Obamacare tax. You’ll learn exactly how to use this money-saving strategy when you read the full article.
  4. Turn your rental properties into tax shelters. It may be a bit trickier today than in the past, but you can still use your rental properties to create tax deductions and positive cash flow. You’ll find out how when you read the full article.
  5. Change your passive-loss groupings. Are you happy with your current passive-loss groupings? If you’re not, and it turns out you are subject to the 3.8% tax, you’ve got a great chance to undo/redo those groupings. We’ll explain this in detail when you read the full article.

Filed Under: Featured Articles, Investments, Legislation, Passive income and losses, Tax Planning

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