While clients may welcome the increased certainty from the permanent changes to estate and gift tax exemptions, they may not be prepared for the impact of the net investment income tax. Advisers should work with affected clients to reduce the 3.8% NIIT, which also affects trusts. This article lists seven planning opportunities, such as utilizing grantor trust powers, shifting income to beneficiaries with lower adjusted gross income, and investing in tax-exempt or tax-deferred vehicles. It also discusses the use of portability as a planning tool. PFP/PFS members, access client communication materials, planning resources and more in the Planning After ATRA and NIIT Toolkit.
The Internal Revenue Service issued final and proposed regulations on applying and computing the 3.8% net investment income tax. This article discusses the differences between the proposed and final regulations. Taxpayers can rely on proposed or final regulations for tax years beginning before Jan. 1, 2014; final regulations apply to tax years beginning after Dec. 31, 2013. PFP/PFS members, access resources on planning for the NIIT in the Planning After ATRA and NIIT Toolkit.
In this podcast, Bob Keebler interviews David Kirk and Adrienne Mikolashek, attorneys within the Pass Throughs and Special Industries Division of the Office of Chief Counsel at the Internal Revenue Service, who helped draft the net investment income tax regulations. They review new IRS Form 8960, Net Investment Income Tax -- Individuals, Estates, and Trusts and the draft instructions. PFP/PFS members, access more resources in the Planning After ATRA and NIIT Toolkit.
In this webinar, Bob Keebler reviews new Form 8960, Net Investment Income Tax for Individual, Estates and Trusts, taking planners through the form on a line-by-line basis. Keebler cautions that the net investment income tax will be a challenge for preparers this tax season. PFP/PFS members have access to a variety of planning resources for the NIIT in the Planning After ATRA and NIIT Toolkit.
This article offers retroactive 2013 year-end tax-planning tips and deadlines for actions your clients can take in 2014. They include retirement plan contributions, wash stock sales, estimated tax payments, actions related to trusts, estates and foundations, and business and employee taxation issues. The Planning after ATRA and the Net Investment Income Tax Toolkit from the AICPA PFP Division features several year-end planning strategies and resources that continue to be relevant in 2014.