Net Investment Income Tax (Currently Unavailable)

Author: Barbara Weltman, Sidney Kess

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

The Net Investment Income (NII) tax is an additional tax on high-income individuals, trusts, and estates, that have investment income. The rate is a flat 3.8% of such income over threshold amounts. While the tax rules for the NII tax have not been changed by recent legislation, it is having an ever-growing effect because threshold amounts are not adjusted for inflation. This CPE course provides you with an overview of the special concerns for the net NII tax and planning opportunities to minimize or avoid the tax.

Publication Date: July 2023

Designed For
CPAs, Enrolled Agents, Tax Return Preparers

Topics Covered

• Overview of NII Tax, including the threshold amounts
• What is included in the NII tax and what is not
• The impact of the NII on a trade or business
• Passive activity income
• Special rules that apply to net operating losses
• Calculating the NII Tax
• Special Concerns for Trusts and Estates
• How undistributed net investment income of a trust or estate impacts the NII tax
• Figuring the NII tax for an ESBT
• Special reporting for trusts and estates on Form 8960

Learning Objectives

• Explain the computation of the NII tax
• Identify the reporting rules for the NII tax
• Identify special rules for trusts and estates
• Identify the form individuals who are subject to the NII tax use to figure the tax

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
None

Advance Preparation
None