The net investment income tax (NIIT) can surprise clients who do not see themselves as high income, especially in years with investment gains, retirement distributions, rental activity or a change in filing status. In this session, we’ll cover practical planning strategies tax professionals can use to identify exposure, explain the rules in plain terms and reduce the tax when appropriate. We’ll also connect the rules to Form 8960, Net Investment Income Tax - Individuals Estates and Trusts, so we can confirm how common income items flow to the calculation and where planning decisions show up on the return. We’ll focus on what counts as net investment income (NII), how modified adjusted gross income (MAGI) determines the threshold, and planning levers such as the timing of income and deductions, capital gains management, passive activity considerations, and coordination with entity and retirement planning.
Objectives
Upon completion of this session, you will be able to:
Identify clients who may be subject to the NIIT and summarize the income, and threshold rules that trigger it
Distinguish common income items that are included in NII such as investment income, rental income and business income
Apply practical planning strategies to manage MAGI and NII, including timing of gains and deductions
Evaluate common client scenarios that affect NIIT outcomes, including passive activity treatment and disposition events
Duration: 100 minutes Course level: Intermediate Prerequisite: Basic understanding of federal income tax Advanced preparation: None Delivery method: Group Live
