The IRS has released final regulations on the new Net Investment Income Tax (NIIT) that took effect on Jan 1, 2013. The 3.8% tax applies to certain net investment income of individuals, estates, and trusts that have income above certain threshold amounts. A newly compiled Q&A page on the NIIT is available on the IRS website, and it provides lots of guidance including thresholds, types of income that are considered investment income, clarifications regarding gains on sales of personal residences, and several examples to help us better understand the new tax.
The NIIT is one of the many tax changes that are happening in the 2013 tax year. If you haven’t yet done […]