Readers’ Questions

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Questions

What is the new tax on medical devices, and will I have to pay it?

Under the Patient Protection and Affordable Care Act of 2010 (ObamaCare) a 2.3 percent excise tax was added to most medical devices such as walkers, wheelchairs, and lift chairs.  The tax is imposed on and paid by the manufacturer, so the end user will not see it listed separately on their invoice the way they see sales tax listed.  But rest assured, the tax will most likely be passed on to consumers in higher costs.

I have deducted a business home office for many years.  Will I owe taxes when I sell my home?

Yes.  The law is complicated but you must “recapture” the allowed depreciation for your home office dating back to May 6, 1997.  This portion is not eligible for the $250,000/$500,000 home sale exclusion.  Check with your tax advisor when you sell your home.