The Patient Protection and Affordable Care Act (P.L.111–148), (as amended by the Health Care and Education Reconciliation Act of 2010 (Pub.L. 111-152), contains a 3.8% net investment income tax (NIIT), that will impact estate and trusts, starting in 2013.
For tax years beginning after 2012, new Internal Revenue Code (IRC) section 1411 imposes a 3.8 percent tax on certain passive investment income of individuals and of trusts and estates above certain threshold amounts. To assist in planning to minimize the impact of the tax on estates and trusts, practitioners should understand what income it applies to and how the tax is calculated.
This page contains resources for members to better assist their clients in planning for the 3.8% net investment income tax and its impact on trusts and estates. It includes links to webinars that cover the new tax and estate and trust income, avoiding gains on funding, the timing of distributions, proper investments to avoid the NIIT and more. We appreciate the contributions from Robert Keebler, an AICPA member who developed many of these resources and is making them available to our members.
Webcasts and Podcasts:
January 29, 2014 - Implementation of the Net Investment Income Tax on Estates and Trusts - Free/No CPE | CPE (Rebroadcast 2/5/14 - 1-2 pm e.t.)
November 26, 2013 - 3.8% Net Investment Income Tax Final Regulations Podcast (Powerpoint)
October 30, 2013 - Year-End Planning for the Net Investment Income Tax on Indiviudals, Estates and Trusts, Partners and S Corporation Shareholders
October 22 and 25, 2013 - Overview of Year-End Planning and the Net Investment Income Tax (Practitioner oriented - Powerpoint) (Consumer oriented - Powerpoint)
July 17, 2013 - Impact of the New 3.8% Tax on Net Investment Income on Individuals and Pass-Through Entities
Archived Jan. 17, 2013 - Compliance and Planning Issues with the 3.8% Net Investment Income Tax
- AICPA comments on the proposed regulations and trusts and estates - May 8, 2013.
- AICPA comments on section 1411 issues related to Controlled Foreign Corporations (CFCs) and Passive Foreign Investment Corporations (PFICs) - August 05, 2013.
- AICPA comments on section 1411 issues related to 736 partnership payments - August 1, 2013.
- AICPA comments on the section 1411 regulations - June 17, 2013.
- AICPA comments the Paperwork Reduction Act and proposed regulations under section 1411 - February 4, 2013.
- Final regulation on net investment income tax - TD 9644 (11/26/13)
- New proposed regulation on net investment income tax - REG-130843-13 (11/26/13)
For additional AICPA resources and information on the section 1411 net investment income tax, see the AICPA section 1411 NIIT webpage.