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 | Impact of Tax Reform on Planning 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