Although IRS guidance is still in the making, it would appear from what we currently know that carried forward net operating losses from a business will not offset current year earned income for purposes of calculating the .9% earned income tax. Likewise, carried forward passive losses/capital losses will not offset current-year passive income or capital gains for the purpose of calculating the 3.8% net investment income tax.
Congress did not include in this bill any income averaging options. Even if you generally earn well below $200/$250 these additional taxes may take a bite out of you on the occasion of a once in a lifetime sale of property or real estate. Like kind exchanges (1031 transactions) and installment sales may come back into vogue. Taxpayers currently in the midst of reporting an installment sale may want to elect out of this treatment and pick up the remainder of the gain in 2012.