In your year-end planning and consideration of deferring deductions and accelerating income, sales of property could have a big impact under the Build Back Better Act. The NII Tax (3.8%) is tied to Taxable Income levels ($400k/$500K) and the 5%/ 3% surcharge is tied to Modified Adjusted Gross Income – both will be increased by sales of property in the ordinary course of a trade of business.
The U.S. House of Representatives approved the Build Back Better Act on Nov. 19 by a vote of 220 to 209. The bill now goes to the Senate, where it’s likely to be revised and vote isn’t expected until year end.
Build Back Better Bill
.pdf
Download PDF • 4.14MB