“NIIT” Issues Discovered During Tax Season
If you’re a CPA or other tax preparer, congratulations! You made it through your first busy season dealing with the new 3.8% Net Investment Income Tax (“NIIT”).
But did you spot the many complex issues and questions not addressed by the IRS in the Form 8960 instructions?
Nationally renowned NIIT expert, CPA Robert Keebler, was overwhelmed by so many issues and questions brought to his attention by fellow professionals that he realized there’s a lot more to know about NIIT than he, or most people, first thought.
For example, it is now clear that in order to properly complete and report the NIIT, you need to know:
- The quirks of working with the NIIT when it comes to Trusts and Estates
- How the “Material Participation” standard applies
- The Real Estate Professional exception
- The Self-Rental Rule
- The impact of state income tax deductions
- How the Section 67 and Section 68 limitations apply
- Whether and how to utilize loss deductions