Investing Guide at Deep Blue Group Publications LLC on Last-minute tax-filing advice | Deep Blue Group Publications LLC |
You can make this payment online from your bank or savings account without a fee using the Franchise Tax Board's Webpay system - or with a fee by using your credit card. The tax applies to income from investments such as interest, dividends, capital gains, rents and royalties. The 3.8 percent tax is applied to either net investment income or the amount that a taxpayer's modified adjusted gross income exceeds the thresholds stated above for their filing status - whichever is less. The tax generally applies to income and capital gains from rental property, with a few limited exceptions. Don "would probably have some pretty significant hurdles to overcome to avoid the 3.8 percent tax on net investment income for the sale of the rental property," says Mark Luscombe, principal analyst with CCH Tax and Accounting. [...] he would have to qualify as a real estate professional under the passive activity loss rules (spelled out in Publication 925.) [...] he would have to meet a 500-hour test under the net investment income tax rules (spelled out in the instructions for Form 8960). The tax court has been ruling "right and left" against people purporting to be real estate professionals to lower their taxes. [...] in January 2013, the Internal Revenue Service said, in a chief counsel advice, that California residents may not deduct the Fire Prevention Fee as a real property tax deduction because it is not a tax under federal or state law, not levied at a like rate, not imposed throughout the taxing authority's jurisdiction and is assessed only against specific property to provide a local benefit.