The 3.8% Tax

After reading an August 2011 Houston Realtor article named "The 3.8% Investment Income Tax is Not a Real Estate Transfer Tax" by Dana Kervin, I could not believe what I was reading. My understanding is that the tax is a last minute addition to the 2010 healthcare reform legislation that could have a major impact in the real estate community, especially with investors, as well as with other people who may have other types of investments. Many people do not know about this new tax on "unearned income", dedicated to Medicare funding. Do you? This tax becomes effective January 1. 2013, and the tax will be applied to some income from interest, dividends, rents (less expenses) and capital gains (less capital losses), etc. It is a complicated tax that may affect everyone, but it will fall on individuals with an adjusted gross income above $200,000 and couples filing a joint return with more than $250,000 AGI. The article references an informative brochure that can be downloaded from www.realtor.org which explains the tax in further detail with several possible scenarios. It also mentions an additional 0.9% tax on "earned" income of higher income individuals. Please post your thoughts and/or concerns on this issue, and how this new tax personally may affect you or others you know.

Lake Livingston Sunrises

DAWN IN THE ISLAND CAMP

by William Wilfred Campbell

RED in the mists of the morning,

Angry, colored with fire,

Beats the great lake in its beauty,

Rocks the wild lake in its ire.

Tossing from headland to headland,
Tipped with the glories of dawn,

With gleaming, wide reaches of beaches,

That stretch out far, wind-swept and wan.

Behind, the wild tangle of island,

Swept and drenched by the gales of the night;
In front, lone stretches of water

Flame-bathed by the incoming light:

Dim the dark reels and dips under,

Night wavers and ceases to be;

As God sends the manifold mystery
Of the morning and lake round to me