Commentary: How to calculate deductions against new 3.8% Medicare surtax

07/25/2013 | Nerd's Eye View blog

Several factors determine how net investment income will be affected by the 3.8% Medicare surtax on portfolio income, Michael Kitces writes. "[T]he basic gist is that investment management fees are deductible for purposes of the 3.8% Medicare tax on net investment income," while subject to other rules, Kitces writes. The Internal Revenue Service has issued guidance on the matter and will provide forms to simplify calculations of deductions related to the tax.

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