Important Message:  The new Medicare surtax applies to trusts and estates!

The recent Supreme Court’s decision to uphold the Affordable Care Act confirmed that trust and estates will be subject to the 3.8% Medicare surtax starting in 2013.  This surtax will apply if net investment income, inside of the trust or estate, exceeds approximately $12,000.

Net investment income for a trust or estate includes interest, dividends, capital gains, annuities, rents, royalties, income from passive activity investments, etc.  Once this net investment income exceeds the threshold, the 3.8% surtax is applied.  Remember that this tax is in addition to the federal and state taxes already required to be paid by the trust or estate.

Now is the time to discuss the specifics of your trust or estate to determine how the 3.8% Medicare surtax is going to impact you.  If you would like to discuss this new tax, and potential planning opportunities,  contact Blackman & Sloop to set up an appointment.

About Blackman & Sloop CPAs, P.A.:

Blackman & Sloop is a full-service CPA firm headquartered in Chapel Hill, North Carolina and is actively involved in auditing, taxation, management consulting, financial planning, and related services. The firm directs a large part of its services toward providing management with advice on budgeting, forecasts, projections, financing decisions, financial analysis, and tax developments. The firm also performs review and compilation services and prepares not-for-profit, corporate, individual, estate, retirement plan, and trust tax returns as well as technology consulting services regarding installation and training on QuickBooks. Blackman & Sloop provides services in Raleigh, Durham, Chapel Hill, RTP, Hillsborough, Pittsboro, Charlotte, and the rest of North Carolina. To find out more please visit

Contact: CPA

Toll Free: 1-877-854-7530
The Exchange West
1414 Raleigh Rd, Suite 300
Chapel Hill, NC 27517