Winter 2010-2011, Vol. 35, No. 3

Abstract: If real estate investors and small business owners are to maximize after-tax profits, they must have a working knowledge of the latest legislative changes enacted by the United States Congress that pertain to their investment-related activities. On March 23, 2010, President Barack Obama signed into law the Patient Protection and Affordable Care Act, followed closely (March 30, 2010) by the Health Care and Education Reconciliation Act that amended the Affordable Care Act. These major pieces of legislation contain (in addition to many non-tax items) several new or modified tax provisions and amendments to the Internal Revenue Code. Small business owners and investors in real estate are urged to look closely at this new legislation to seek ways in which they can significantly diminish their income taxes. Noteworthy changes include a new Medicare tax on unearned income, a new health care tax credit for small businesses, codification of the Economic Substance Doctrine, and others.