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Background

In the current environment where central banks have been monetizing government debt, purchasing real assets
with borrowed money becomes attractive. If fiat currencies are debased, then you hope that the value of the
assets appreciate while the real value of the debt decreases. This is an approach to investment that worked well
during prior inflationary periods. However, a recent tax law change makes this more difficult.

In the summer of 2012, the U.S. Supreme Court affirmed the constitutionality of the Affordable Care Act. A
detailed analysis of this legislation can be reviewed in our article in the library at RubCPA.com.

One of the provisions of the act is a 3.8% surtax on investment income for high income taxpayers starting in
2013. The tax kicks in to the extent that: