Titan Medical Inc (TMDIF)

[was CUIN2]

ORep8 - There is an issue with holding Titan Medical stock because it is considered a "passive foreign investment company" whereby you cannot claim long term capital gains without first discussing it with your accountant and planning in advance of selling your stock. If you do not, no matter how long you hold it, the IRS will be consider it a short term capital gain.

Short term capital gain (less than 1 year) is taxed as ordinary income, long term (1 year or more) is 20% federal . Both short term and long term capital gains are subject to state tax as well as a new 3.8% tax on investment income – included in the Affordable Care Act. This new tax was effective January 1, 2013. See below for details of the 3.8% tax.

This new tax will be imposed on gross income from interest, dividends, rents and capital gains, and will affect individual unmarried taxpayers with an adjusted gross income (AGI) over $200,000 and couples filing a joint tax return with an AGI higher than $250,000 or $125,000 for individuals who use the married filing separate status. The tax applies to the LESSER of either investment income amount or the excess of AGI higher than $200,000 (individual) or $250,000 (married filing joint return).