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Some provisions affect those not deemed wealthy

rate, effectively creating a top 23.8 percent long-term levy for people in the highest bracket (and rates as high as 43.4 percent on short-term gains). It applies to people who have net investment income for the year and whose modified adjusted gross income exceeds $200,000 (singles) or $250,000 (married couples). Thus, it could hit some people who don’t view themselves as rich.

The tax applies on net investment income or the amount by which income tops $200,000/$250,000, whichever is less.

Investment income includes capital gains, dividends and rental income. It also can apply to unsheltered gains from the sale of a primary residence, which is where some middleincome people could be caught by surprise. Homeowners who meet certain requirements can shelter a lot of profit from the sale of a house — up to $250,000 for singles and $500,000 for married couples, not to mention expenses such as remodeling projects that add to their property’s untaxed “basis” amount. Above that, the 3.8-percent surtax could apply on part of a home-sale gain.

A key strategy to minimize the 3.8 percent tax is to avoid big “spikes” in investment income in any year, such as when selling large-dollar assets including homes, CCH suggests.

Certain higher-income taxpayers (those earning above $250,000 for singles or $300,000 for married couples) could see some of their otherwise-allowable itemized deductions taken away, and part of their personal exemptions could get phased out.

Speaking of deductions, another notable change involves medical expenses,which now can be written off only to the extent they exceed 10 per-