PA Real Estate Blogs

On June 28, 2012, the U.S. Supreme Court issued its opinion concluding that most of the provisions of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (together, the ACA) are constitutional. Most importantly, a majority held that the individual mandate was constitutional, but only by viewing it as a tax and not as an exercise of the power of Congress to regulate interstate commerce. As a result, all of the rest of the Act, (including its tax provisions) with one exception, is also constitutional.

Here are some of the key tax provisions of the ACA:

• New Medicare tax on investment income
• Additional Medicare tax on wages
• Individual mandate
• Employer mandate
• Insurance exchanges and health insurance premium tax credit
• Health insurance coverage of older children
• Small Business Health Care Tax Credit
• Increase to the AGI limit of deductible medical expenses
• Limit on employee contributions to health flexible spending arrangements
• Medicare Part D Deduction

ACA rules already in effect

We will have to see what impact will this have on the Real Estate market?