- NY Credits : 3.0
- TX Credits : 3.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 3.0
- IRS Non-Credentialed Return Preparer Credits : Federal Tax - 3.0
The Net Investment Income Tax (NIIT) is imposed by section 1411 of the Internal Revenue code. It went into effect starting on January 1, 2013. The 3.8 percent NIIT applies to individuals, estates, and trusts that have income above statutory threshold amounts. Since this tax may impact you or your clients, it is important to understand it. This course will examine NIIT and discuss the three categories of net investment income, the potential for tax on that income, and how the choice of entity can affect the tax calculations. It also explains properly allocable deductions and how expenses are allocated to the three categories. This intermediate course is most appropriate for the professional with detailed knowledge in net investment income or the professional seeking to expand his or her knowledge base in the subject.
Upon successful completion of this course, the user should be able to:
identify the three categories of net investment income and the types of gains and losses subject to net investment income tax,
recognize the passive activity rules and how passive activities affect net investment income,
determine the impact that choice of entity has on the self-employment and net investment income taxes, and
allocate expenses properly to the three categories of net investment income.