Passive Activities Estate and Trust Considerations

Originally aired 07/23/2014


Seminar recording | Presentation material  | Outline

Recent tax acts have dramatically changed the landscape for estate and trust planning and have focused increased importance on several income tax considerations. These are magnified by the condensed income tax brackets, tax rate increases, and the new 3.8% net investment income tax.

In an earlier video, Sidney Kess, CPA, J.D., LL.M. and Robert S. Barnett, CPA, JD, MS (Taxation) discussed a fundamental overview of trust and estate taxation, as well as the impact of new tax law changes and opportunities for CPAs in this area.

In this video, Kess and Barnett discuss the importance of understanding the passive activity rules as they relate to estates and trusts, in particular with respect to opportunities and pitfalls with the new 3.8% net investment income tax. They cover:

  • An overview of the passive activity rules
  • Passive activity considerations for estates and trusts
  • How the net investment income tax and passive activity rules intersect
  • Implications of the Aragona Trust decision