[quote=SK in CV]The income level is without regards to wages or other business income. If you earn $400,000 a year from a job, and a have a few bucks in interest income, this tax will not apply.[/quote]
Can you clarify this please. I read the text to intend the gain from a property sale was added to my salary to determine the adjusted gross income and that total is looked at when the tax is imposed. Thank you for helping me understand.
Here is the text:
from page 946:
‘‘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.
