Income Tax Planning for
LLCs, FLPs, Trusts and Estates
(And Their Owners or Beneficiaries)
Just Got Trickier!
Under IRC Section 1411, income from pass-through entities received by a taxpayer is subject to the 3.8% net investment income tax (NIIT) if it is (1) from a passive activity and (2) not derived in the ordinary course of trade or business. Therefore, any income an individual or trust or estate receives from an activity will be subject to the NIIT if the individual or trust or estate is passive in the activities. In order for the individual or trust or estate to avoid being passive with regard to those activities, it must “materially participate” under the passive activity loss rules promulgated in Section 469 and the Regulations thereunder.
If you’re an attorney or CPA who advises (or does tax returns for LLCs, FLPs, Trusts or Estates), you need to know:
- How the passive activity loss rules in Section 469 and its Regulations impact the NIIT
- What constitutes “material participation”
- How to utilize “grouping”
- The self-rental rule
- The real estate professional rule
- How to navigate the self-charged interest rule
- Applicable case law and IRS guidance
- Where the planning opportunities are
Join us and nationally renowned CPA, Robert Keebler, for a special presentation entitled, “What You Need to Know About the Passive Loss Rules for LLCs, FLPs, Trusts and Estates.”