Preservation | Family Wealth Protection & Planning

Subscribe

Blog Editors

Topics

Archives

Posts tagged net investment income tax (NIIT).
By Keith Herman on March 1, 2018 at 1:52 PM

Jar of money with a sign on it that says "tax" - showing tax savingsSimilar to individuals, trusts normally pay federal and state income taxes. In 2018, the highest federal rate of 37 percent only applies to single individuals if they have more than $500,000 of income and to married couples filing jointly if they have more than $600,000 of income. However, a trust will be in the highest federal tax bracket if it has more than $12,500 of income. (The maximum long-term capital gains and qualified dividends rate is now 20 percent for trusts with more than $12,700 of income.)

Facebook Twitter LinkedIn Google+ Email
By Garrett Reuter, Jr. on January 12, 2018 at 10:40 AM

Flipping through the calendar, showing the passing of time.How many times have you prepared your income tax returns for the previous year, only wishing you knew then what you know now, so you could go back and make more advantageous tax decisions? In most cases, you are stuck with the decisions you made before the new tax year began, even though you may not have all of the relevant tax information available to assist with those decisions until several months into the new tax year. Too bad for you, says the IRS, unless you are an estate or trust.

Facebook Twitter LinkedIn Google+ Email
By Garrett Reuter, Jr. on December 14, 2016 at 2:46 PM

An updated version of this post can be found here.

Turning back timeHow many times have you prepared your income tax returns for the previous year, only wishing you knew then what you know now so you could go back and make more advantageous tax decisions? In most cases, you are stuck with the decisions you made before the new tax year began, even though you may not have all of the relevant tax information available to assist with those decisions until several months into the new tax year. Too bad for you, says the IRS, unless you are an estate or trust.

Facebook Twitter LinkedIn Google+ Email
By Keith Grissom on June 28, 2016 at 9:51 AM

As discussed in an earlier post, trusts and estates may be subject to a 3.8 percent tax on net investment income over certain threshold amounts. Net investment income may include trade or business income from passive activities — those in which the taxpayer does not “materially participate,” according to Section 469 of the code. So, the determination of whether a trust or trustee materially participates may decide whether the income is passive, and consequently, subject to the net investment income tax, or NIIT. 

Facebook Twitter LinkedIn Google+ Email
By Keith Grissom on June 16, 2016 at 1:36 PM

To help fund the Affordable Care Act, a 3.8 percent net investment income tax took effect in 2013. The tax, known as the NIIT, is imposed against individuals, trusts and estates on non-business income from interest, dividends, annuities, royalties, rents and capital gains above certain thresholds. 

Facebook Twitter LinkedIn Google+ Email

This website uses cookies to improve functionality and performance. If you choose to continue browsing this website, you consent to the use of cookies. Read our Privacy Policy here for details.