UPDATE ON THE 3.8% TAX ON NET INVESTMENT INCOME
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Even though the regulations are generally proposed to be effective for taxable years beginning after December 31, 2013, taxpayers may rely on such regulations for the 2013 taxable year.
If you remember the IRS had issued proposed regulations in early December. Some of it was outlined earlier in this blog:
The 3.8% Tax on Net Investment Income Demystified!
With the release of this long-awaited draft form, the IRS brings a little more clarity to Section 1411. The instructions to the form have still to come. That means many aspects to the computations, exceptions to income, allocations to non-passive investors are not known at this present time.
The link to the draft form is here.
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