‘‘SEC. 1411. IMPOSITION OF TAX.
‘‘(a) IN GENERAL.—Except as provided in subsection (e)—
‘‘(1) APPLICATION TO INDIVIDUALS.—In the case of an individual,
there is hereby imposed (in addition to any other tax
imposed by this subtitle) for each taxable year a tax equal to
3.8 percent of the lesser of—
‘‘(A) net investment income for such taxable year, or
‘‘(B) the excess (if any) of—
‘‘(i) the modified adjusted gross income for such
taxable year, over
‘‘(ii) the threshold amount.
Question for the tax pros – Suppose I sell a property and have a capital gain which is listed in my adjusted gross income. Under section B that capital gain is added to my normal income when determining the threshold amount. Then tax is applied to the amount above $250k. Is this correct?
If so, this is a sneaky way to base load the tax floor.
