Michael Petruccelli asks; If you sell your primary home at a substantial gain after 2012 will you trigger the special 3.8% Medicare surtax?

Michael Petruccelli says; Starting in 2013, the new health care law imposes a 3.8% levy on investment income of singles with adjusted gross incomes over $200,000 and marrieds above $250,000. The surtax is levied on the smaller of the filer's net investment incomes or the excess of AGI over the thresholds. Capital gains are treated as investment income. Thus, if you expect the surtax will hit you after 2012 and the gain on the sale of your home will exceed $250,000 if you re single or $500,000 if married, gain over these amounts will bear an extra 3.85 tax. So it may pay handsomely to sell before the end of 2012.