Net Investment Income Tax (Currently Unavailable)

Author: Lee T. Reams, Sr.

CPE Credit:  1 hour for CPAs
1 hour Federal Tax Related for EAs and OTRPs
1 hour Federal Tax Law for CTEC

As part of the 2010 Patient Protection and Affordable Care Act (PPACA) Congress imposed a surtax on net investment income on certain higher income taxpayers effective for years beginning in 2013 by adding new Code Sec. 1411.

Publication Date: April 2014

Topics Covered

  • Tax Computation
  • Rentals & NII Tax
  • Material Participation
  • Allocable Itemized Deductions

Learning Objectives

  • Recognize which taxpayers Section 1411 tax applies to
  • Identify a trust's net investment income tax when preparing a Form 1041 with undistributed net investment income
  • Differentiate and describe investment income
  • Recognize the steps to follow with an individual with rental activities, constituting a trade or business
  • Differentiate allowed investment expense when computing net investment income
  • Calculate net investment income tax
  • Identify AGI for purposes of the net investment income tax computation
  • Recognize regrouping of passive activites
  • Differentiate correct statements regarding investment income and gains from sales of property

Level
Overview

Instructional Method
Self-Study

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
None

Advance Preparation
None

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