NIT4
SURGENT’S GUIDE TO UNDERSTANDING THE NET INVESTMENT INCOME TAX IN 2015

The net investment income tax is now an overriding concern to many taxpayers, particularly business owners and real estate investors. Understanding the tax is critical to comprehensive tax planning for individual clients. The NII tax base is related by complex rules to the passive activity regulations that require an in-depth understanding of election and planning issues that CPAs need to know. The IRS has been very aggressive in audits under the passive loss rules and will now expand their investigation to include the NII tax.

Major Topics:

  • Understanding the implications of the net investment income tax
  • Pass-through entity issues and answers
  • Investment income, passive income, and capital gain income: separate categories create unique problems
  • What expenses are allowed against NII, and how do you calculate them?
  • Carryovers, NOLs, AMT, and other issues
  • Tax planning for AGI and minimization of this tax
  • Unique tax issues of sales of S corporation stock or partnership interests

Learning Objectives:

  • Understand the net investment income tax
  • Discuss tax planning issues on these topics with clients

Designed For: CPAs in public accounting who deal with complex individual tax returns
Level of Knowledge: Intermediate
Prerequisite: Five or more years in public accounting working on complex individual tax returns
Advanced Preparation: None
Credits: 4