Written by Reed Tinsley |
August 12, 2013
The IRS released a draft of Form 8960, which will be used by individuals, estates, and trusts to compute the new 3.8% net investment income tax (NIIT). Beginning in 2013, individuals must pay the 3.8% NIIT on the lesser of (1) net investment income or (2) modified adjusted gross income (MAGI) over a certain threshold amount. Trusts and estates will owe it on the lesser of (1) undistributed net investment income or (2) the excess of AGI over the amount at which the highest estate and trust income tax bracket begins.
About the Author
Reed Tinsley CPA
This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on
accounting & tax,
practice management, and
financial planning.
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