People with incomes over $200,000 (single) or 250,000 (married)--after various adjustments of course--who are thinking of disposing of assets with potential capital gains will be considering whether to dump them before 2013 to avoid the new Medicare surtax that will go into effect then. The surtax is 3.8%, and it applies only to people in upper income brackets as mentioned above.
There are always people selling businesses, real estate, etc., and it is certain that some people who have deals in the works are rushing to get them finalized before the stroke of midnight on December 31. Some people, too, who have stocks which they plan to sell are going to make sure they sell them before that witching hour. Also, accountants will be crunching numbers and potential sellers will be weighing circumstances to determine if avoiding the surtax will outweigh other potential costs or effects of accelerating the sale. Each case will be different; there may be many considerations involved. It is pretty sure, though, that it will mean extra work for some stock brokers, financial advisers, accountants and their clients. It could contribute to some extra volatility in the stock market at the end of the year.
There is also a pending tax increase of 5% for the actual capital gains tax that is supposed to take effect in 2013. There is a chance that it will be eliminated before it takes effect--at least many people are hoping so--but for now it is still scheduled.
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