Understanding the 3.8% Net investment Income Tax
New Special Report!
UNDERSTANDING THE 3.8% NET INVESTMENT INCOME TAX
The NIIT is a 3.8% tax that applies to individuals, estates and trusts that have certain investment income above applicable threshold amounts. On its surface, the NIIT sounds simple enough, but like everything else the devil is in the details – and there are a lot of details in this regulation.
This Special Report covers the final regulations and the 2013 proposed regulations, including some of the key differences between the 2012 proposed regulations and the updated rules. The difference may determine which set of regulations should be followed when preparing 2013 returns for affected clients.
Request Special Report: Understanding the 3.8% Net investment Income Tax
(All fields required)
» NOTE: By clicking “Submit,” you agree to be contacted in order to help with your inquiry.
Online Course | 3 CPE | $48 or
FREE for Premier & Premier Plus Subscribers*
The Net Investment Income (NII) Tax went into effect starting on January 1, 2013. The Health Care and Education Reconciliation Act of 2010 added new Section 1411 to the Internal Revenue Code, and the IRS released a proposed regulation in December 2012 that is about 150 pages long. The 3.8 percent NII tax applies to individuals, estates, and trusts that have certain investment income above statutory threshold amounts ($200,000 single and $250,000 married filing jointly). Interest, dividends, capital gains, and rental income are some of the income types that are included in NII. This basic-level course will examine the new tax and discuss the three categories of NII, the potential for tax on that income, and how the choice of entity can affect the tax calculations.
PPC’s 1040 Deskbook provides detailed, easy-to-understand, and affordable tax return focused guidance, complete with real-life examples and illustrations of filled-in forms, so owners and/or staff can quickly and easily resolve the key issues encountered when preparing individual tax returns. The Deskbook provides workflow guidance, tools and other practice aids that will save time, help ensure returns are accurately prepared, and enable owners and/or staff to identify potential tax planning opportunities for clients.
PPC’s 1041 Deskbook cuts through the complexity of preparing fiduciary income tax returns and provides practical step-by-step guidance on the basics of Form 1041 preparation as well as more complex issues such as determining fiduciary accounting income and distributable net income (DNI), computing the distribution deduction, allocating capital gains and depreciation, reporting income in respect of a decedent, filing Form 1041 in the estate or trust’s final year, understanding the reporting requirements for foreign trusts and charitable trusts, and more.
Given the IRS’s renewed interest in examining pass-through returns and emphasis on practitioner due diligence, proper preparation of your clients’ returns is more important than ever. With the key issues, examples, filled-in Schedule K-1s and other forms, checklists, worksheets, and other quality control tools in PPC’s 1120S Deskbook, you and your staff can solve the difficult or unclear issues encountered when preparing Form 1120. The Deskbook points out elections and other tax-saving opportunities while preparing the return; plus, the tax planning roadmap highlights post-busy season planning opportunities that you and your staff.
Partnerships will be a “top priority” for the Small Business/Self-Employed (SB/SE) Division, according to the SB/SE Commissioner. With the key issues, examples, filled-in Schedule K-1s and other forms, checklists, worksheets, and other quality control tools you’ll find in PPC’s 1065 Deskbook, you and your staff can solve the difficult or unclear issues encountered when preparing Form 1065. The Deskbook points out elections and other tax-saving opportunities while preparing the return; plus, the tax planning roadmap highlights planning opportunities that you and your staff can pursue after busy season.
PPC’s Guide to Tax Planning for High Income Individuals contains the strategies necessary to help your clients minimize the impact of higher tax rates and lower deductions and maximize the after-tax return on their investments. This Guide contains the detailed strategies you need to help clients minimize the impact of the new 39.6% ordinary income and 20% capital gains rates. In addition, the Guide explains the new 3.8% net investment income tax, additional 0.9% Medicare tax, and strategies necessary to limit your client’s exposure to these new taxes.