[quote=henrysd]I just read a different article saying rent income may be exempt from 3.8% Obama tax if you can prove it is active income. Obama law actually says 3.8% on unearned income normally from passively income including capital gain and dividend.
If you manage the rental homes actively, you are making an active income, so it does not subject to the 3.8% tax for high earners.
The law doesn’t say the tax is on unearned income. The tax is on net investment income. Rental income is (generally) passive. The author of that article wasn’t sufficiently competent to write it. Real estate investors aren’t lucking out, as the article implies. Rental income is not investment income. The tax does not apply.
