Starting in 2013, unearned income will bear an extra 3.8% surtax. This includes capital gains. This means that one should probably consider taking capital gains in 2012 to avoid this law. This also means that perhaps sales to family members using self cancelling installment notes, might be advisable in 2012 and recognizing the gain in 2012 even though you don’t yet have the cash. With the real estate market still recovering slowly at best, its a good year for intrafamily sales since fair market values are low.