Implementation of the New 3.8% Net Investment Income Tax for S Corporations and their Shareholders 

    originally aired 1/7/14 

    Seminar recording | Presentation material | Proactive Planning After ATRA and NIIT Toolkit

    The new 3.8% net investment income tax (NIIT) under section 1411 will affect many partners and S Corporation shareholders. 

    During this webcast, the speakers will provide suggestions to practitioners with S corporation clients on how to implement the new tax as it applies in its first year.  The speakers will provide a background of the NIIT and its application to S corporations and S corporation shareholders, including definitions of key terms, passive versus active income, and state income tax considerations. Examples will be provided.

    The following issues will be covered:

    • Which S corporation shareholders are subject to the tax
    • How the new tax is calculated
    • What types of income are subject to the tax
    • What amounts are deductible for purposes of computing net investment income
    • Effect of the new tax on a taxpayer’s grouping elections under section 469
    • Effect of the new tax on dispositions of interests in S corporations



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